If a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.producer surplus from shrimp will ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change

Question

Quizplus · Accepted Answer

When a tariff is imposed on imports, the price of the product increases, leading to a decrease in consumer surplus. Therefore, U.S. consumer surplus from shrimp will decrease. On the other hand, producers will benefit from the tariff, as the price they receive for their product increases, leading to an increase in producer surplus. Therefore, U.S. producer surplus from shrimp will increase.

If a Tariff Is Imposed on Imports of Shrimp into the United