Of the following,who gains because of tariffs and why?
A) domestic producers of protected goods because they can sell at a higher price
B) domestic buyers because they can be sure of buying high-quality products
C) foreign producers because they earn more total revenue
D) foreign government because they gain more revenue
E) domestic buyers because they pay a lower price

Question

Quizplus · Accepted Answer

Domestic producers of protected goods benefit from tariffs because the higher price they can charge for their products makes them more competitive with foreign imports. This can increase their profitability and protect jobs in the industry.

Of the Following,who Gains Because of Tariffs and Why