Relative to free trade,when a tariff is imposed in a market for an imported good,
A) the consumer surplus in that market increases.
B) the producer surplus in that market decreases.
C) the total surplus in that market decreases.
D) tariff revenue decreases.
E) deadweight loss decreases.

Question

Quizplus · Accepted Answer

When a tariff is imposed, it generally leads to a decrease in the total surplus in the market. This is because tariffs create a deadweight loss by reducing the quantity of imports, leading to higher prices for consumers and inefficiencies in the market.

Relative to Free Trade,when a Tariff Is Imposed in a Market