Answer: Tariffs result in a decrease in the consumer surplus because
the price of the protected good increases and quantity consumed decreases
Explanation:
A tariff is a form of protection used by a country to protect its local industry, prevent dumping, prevent the consumption of certain products and also encourage local production.
Tariffs are imposed on imported goods. When a tariff is imposed on a good, it leads to an increase in the price of the good as producers will want to pass the tax burden to the consumers. Also, due to price increase, there'll be a reduction in the quantity consumed by consumers.
