If a country imposes a tariff on imported goods,
a. Producer surplus decreases, consumer surplus increases, tax revenue decreases, and deadweight loss increases.
b. Producer surplus increases, consumer surplus decreases, tax revenue increases, and deadweight loss increases.
c. Producer surplus increases, consumer surplus decreases, tax revenue decreases, and deadweight loss increases.
d. Producer surplus increases, consumer surplus decreases, tax revenue increases, and deadweight loss decreases.

Question

05-06-2024
Business

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If a country imposes a tariff on imported goods,
a. Producer surplus decreases, consumer surplus increases, tax revenue decreases, and deadweight loss increases.
b. Producer surplus increases, consumer surplus decreases, tax revenue increases, and deadweight loss increases.
c. Producer surplus increases, consumer surplus decreases, tax revenue decreases, and deadweight loss increases.
d. Producer surplus increases, consumer surplus decreases, tax revenue increases, and deadweight loss decreases.

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