If the government eliminated tariffs:
A) the gains in consumer surplus would outweigh the losses in producer surplus.
B) the gains in producer surplus would outweigh the losses in consumer surplus.
C) the gains in consumer surplus would equal the losses in producer surplus.
D) the gains in producer surplus would equal the gains in consumer surplus.

Question

Quizplus · Accepted Answer

Eliminating tariffs typically lowers prices for consumers, increasing consumer surplus more than the loss in producer surplus, as domestic producers face more competition from cheaper imports.

If the Government Eliminated Tariffs