When the government imposes a tariff on imported goods,it _____________ prices for domestic consumers,________________ consumers' surplus and _________________ the producers' surplus for domestic producers.

Question

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A tariff on imported goods makes these goods more expensive, which raises prices for domestic consumers. This decrease in affordability lowers consumers' surplus because they either have to pay more for the same goods or buy less. On the other hand, domestic producers benefit because their goods become relatively cheaper compared to the imported goods, thus raising their producers' surplus.

When the Government Imposes a Tariff on Imported Goods,it _____________