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Nadya [2.5K]
3 years ago
10

Explain the effect of a tariff on consumer surplus and producer surplus.

Business
1 answer:
rosijanka [135]3 years ago
7 0
The increase in the domestic price of both imported goods and the domestic substitutes reduces the amount of consumer surplus in the market. Tariff effects on the importing country's producers. ... The increase in the price of their product on the domestic market increases producer surplus in the industry.
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