Question 36 2 pts The domestic supply of a good that a small

Question 36 2 pts The domestic supply of a good that a small country currently imports is perfectly inelastic. A tariff on that good Will not increase domestic producer surplus. Will not cause any DWL. Both (a) and (b) are true. Neither (a) nor (b) is true.

Solution

Imposition of tariff will increase producer surplus but consumer shall be made to pay higher price. They suffer Deadweightloss.

Hence, right answer is (D) Neither (a) Nor (B) is true.