The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above, U.S. consumers' ________ from the tariff is ________.

Question

Quizplus · Accepted Answer

The correct choice is A) loss; $176 million. Tariffs generally lead to a loss for consumers as they increase the price of imported goods, reducing consumer surplus.

The Figure Shows the Market for Shirts in the United