The larger the U.S.imposed per unit import tariff on a good imported and produced in the U.S. ,
A)the smaller the U.S.consumer surplus.
B)the larger the U.S.producer surplus.
C)the larger the government revenue.
D)All of the above.

Question

Quizplus · Accepted Answer

A larger per unit import tariff will increase the price of the imported good in the US market, reducing the consumer surplus. The increased price will generate larger producer surplus for the US producers who are producing the same good, while the government will collect higher revenue from this import tariff. Therefore, all three options are correct.

The Larger the U