-When a specific tariff is placed on an item, compared to free trade consumers lose:
A) only a.
B) only b.
C) only c.
D) only d.
E) a + b + c + d.

Question

-When a specific tariff is placed on an item, compared to free trade consumers lose:
A) only a. 
B) only b. 
C) only c. 
D) only d. 
E) a + b + c + d.

Quizplus · Accepted Answer

When a specific tariff is placed on an item, compared to free trade, consumers face higher prices, reduced quantity of goods available, potential decreases in product variety, and a loss in consumer surplus. These effects combine to reduce overall consumer welfare.

-When a Specific Tariff Is Placed on an Item, Compared