Figure 9-6
The figure illustrates the market for roses in a country.
-Refer to Figure 9-6.When a tariff is imposed in the market,domestic producers

Question

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6.When a tariff is imposed in the market,domestic producers

Quizplus · Accepted Answer

The correct answer is B. When a tariff is imposed, domestic producers gain $150 of producer surplus. This is because the tariff raises the price of the imported good, making it more expensive for consumers to buy. As a result, consumers will buy less of the imported good and more of the domestic good. This will increase the demand for the domestic good, which will lead to an increase in the price of the domestic good. The increase in the price of the domestic good will increase the producer surplus of domestic producers.

Figure 9-6 The Figure Illustrates the Market for Roses in a Country