As a result of a tariff, producer surplus will increase more than consumers surplus declines.

Name: As a result of a tariff, producer surplus will increase more than consumers surplus declines.
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Question

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A tariff typically increases producer surplus in the domestic market by providing them protection against foreign competition, but it decreases consumer surplus by a larger amount because consumers have to pay higher prices for imported goods. The overall effect is a net loss in total welfare.

As a Result of a Tariff, Producer Surplus Will Increase