The Effect of an Import Tariff on a Specific Imported

Multiple Choice

The effect of an import tariff on a specific imported good on (domestic) consumer and producer surplus can be summarized as follows:

A) Consumer surplus is increased and producer surplus is decreased.
B) Consumer surplus and producer surplus are both increased.
C) Consumer surplus and producer surplus are both decreased.
D) Consumer surplus is decreased and producer surplus is increased.
E) There is no effect on either consumer or producer surplus.