Figure 9-5 -Spain Is an Importer of Computer Chips, Taking the World

Multiple Choice

Figure 9-5
-Spain is an importer of computer chips, taking the world price of $10 per chip as given. Suppose Spain imposes a $5 tariff on chips. Which of the following outcomes is possible?

A) Spanish consumers of chips lose and Spanish producers of chips gain.
B) Fewer Spanish-produced chips are sold in Spain.
C) Spanish consumers and producers of chips gain.
D) Total surplus in the Spanish chip market increases.