contestada

A tariff on avocadoes ______________ the price of avocadoes, _____________ consumers’ surplus for avocado buyers, _______________ producers’ surplus of avocado growers and __________________ tariff revenue. Because the loss to _____________ is more than the gain to ___________________, there is a net loss to society.
a) raises; increases; decreases, generates, producers, consumers and government
b) lowers, increases; decreases; does not generate, producers, consumers
c) raises, increases, decreases; does not generate consumers, producers and importers
d) raises; decreases; increases, generates, consumers, producers and government

Respuesta :

beritop1089

Answer:

d) raises; decreases; increases, generates, consumers, producers and government

Explanation:

Tariffs are trade policies by a local government in a country for the purpose of giving protection to local producers. In the case of avocados, the tariff can bring about some negative effects to local consumers as it minimizes their purchasing power because the avocados become more expensive due to price increase. This effect causes a reduction in consumer’s surplus and an increase in producer’s surplus. The government in return benefits from tariff revenues making choice D correct.

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