-The loss of consumer surplus due to the tariff is:
A) only a.
B) only b.
C) only c.
D) only d.
E) a + b + c + d.

Question

-The loss of consumer surplus due to the tariff is:
A) only a. 
B) only b. 
C) only c. 
D) only d. 
E) a + b + c + d.

Quizplus · Accepted Answer

The loss of consumer surplus due to a tariff includes all areas under the demand curve and above the price level that consumers pay after the tariff is imposed, which typically encompasses areas representing the increased price consumers pay, the reduction in consumer quantity demanded, and the deadweight losses associated with the reduction in trade volume. Therefore, it includes areas a, b, c, and d.

-The Loss of Consumer Surplus Due to the Tariff Is