The consumption component of the deadweight loss in a small nation arises with a tariff because
A)the tariff causes consumers to consume less of the good than they normally would have without the tariff.
B)the tariff causes consumers to consume more of the good than they normally would have without the tariff.
C)consumers continue to consume the same quantity of the good as before the tariff,but they receive less utility than before the tariff
D)the marginal utility of the consumption of each good is less after the imposition of the tariff than before,resulting in a loss of consumer surplus

Question

Quizplus · Accepted Answer

The tariff increases the price of the good, leading consumers to purchase less than they would in a free market, resulting in a deadweight loss due to reduced consumption.

The Consumption Component of the Deadweight Loss in a Small