Consider a Market in Which There Is an Import Tariff

Multiple Choice

Consider a market in which there is an import tariff. Which of the following is TRUE?

A) The lost consumer surplus equals the gain in producer surplus plus the government revenue plus the deadweight loss.
B) The lost consumer surplus equals the gain in producer surplus.
C) The lost consumer surplus equals the gain in producer surplus plus the government revenue.
D) The lost consumer surplus plus the deadweight loss equal the gain in producer surplus plus the government revenue.