The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts.
-The figure above shows that as a result of the tariff,producer surplus in the United States

Question

Quizplus · Accepted Answer

The imposition of a tariff typically benefits domestic producers by providing them with some protection against foreign competition. This protection often leads to an increase in the price of the imported goods, making the domestic goods more competitive in the market. As a result, domestic producers can sell more units at a higher price, which increases their producer surplus. Therefore, without seeing the specific figure mentioned, the general economic principle suggests that the producer surplus in the United States would increase as a result of the tariff.

The Figure Above Shows the U