Tariff on tennis racquets Suppose a country imports tennis racquets. If the government introduces a tariff on tennis racquets, the tariff revenue it collects will exceed the reduction in CS to domestic buyers of racquets. a) true b) false Can someone help me to understand this question? If a tariff is imposed the consumer surplus will be reduced but do we if it will be greater than the revenue the government collects? any help will be appreciated.
Tariff on tennis racquets Suppose a country imports tennis racquets. If the government introduces a tariff on tennis racquets, the tariff revenue it collects will exceed the reduction in CS to domestic buyers of racquets. a) true b) false Can someone help me to understand this question? If a tariff is imposed the consumer surplus will be reduced but do we if it will be greater than the revenue the government collects? any help will be appreciated.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Tariff on tennis racquets
Suppose a country imports tennis racquets. If the government introduces a tariff on tennis racquets, the tariff revenue it collects will exceed the reduction in CS to domestic buyers of racquets.
a) true
b) false
Can someone help me to understand this question? If a tariff is imposed the consumer surplus will be reduced but do we if it will be greater than the revenue the government collects? any help will be appreciated.
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