4.1.6 Restrictions on free trade

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Question 1
Easy

The diagram below shows the domestic market for smart televisions in Country Z, which initially operates under free trade at the world price PwP_wPw​. The government of Country Z decides to impose an import tariff, ttt, which raises the domestic price.

Tariff Diagram

Which of the following is most likely to decrease as a direct result of this tariff?

The consumer surplus of smart television consumers in Country Z

The producer surplus of domestic smart television manufacturers in Country Z

The quantity of smart televisions supplied by domestic producers in Country Z

The domestic market price of smart televisions in Country Z

4.1.6 Restrictions on free trade Questions

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