7 An import tariff on a specific good means consumer surplusand producer surplusa. Increases; increases.O b. Increases; decreases.O c. Is unaffected; is unaffected.O d. Decreases; decreases.O e. Decreases; increases.

Import tariffs lead to rise in the price of imported goods. Thus, the demand for the domestically…

An import tariff on a specific good means consumer surplus and producer surplus O a. Increases; increases. O b. Increases; decreases. O c. Is unaffected; is unaffected. O d. Decreases; decreases. e. Decreases; increases.

An import tariff on a specific good means consumer surplus and producer surplus O a. Increases; increases. O b. Increases; decreases. O c. Is unaffected; is unaffected. O d. Decreases; decreases. e. Decreases; increases.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter19: International Trade

Section: Chapter Questions

Problem 2.5P

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Question

An import tariff on a specific good means consumer surplus
and producer surplus
a. Increases; increases.
O b. Increases; decreases.
O c. Is unaffected; is unaffected.
O d. Decreases; decreases.
O e. Decreases; increases.

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