Question

A graphical analysis of tariffs reveals that Multiple Choice they benefit domestic consumers at the expense of domestic producers. their revenue gains outweigh the costs to domestic consumers. they increase domestic production of the good for which imports face tariffs. although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs.

Answer 1

A graphical analysis of tariffs reveals that  they increase domestic production of the good for which imports face tariffs.

A tariff is a form of tax levied on the import  of certain goods and services. Import goods are goods that are brought into a country from another country.

Tariffs increases the price of imported goods. This discourages importation of those goods. As a result, there is less competition between foreign produced goods and domestic production. This boosts domestic production.

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