The U.S. government currently imposes a $0.54 per gallon tariff on all

The U.S. government currently imposes a $0.54 per gallon tariff on all ethanol imported into the country. If this tariff were removed, then:

A) the domestic ethanol price falls.
B) the domestic quantity of ethanol supplied declines.
C) domestic consumer surplus increases.
D) domestic producer surplus decreases.
E) all of the above

 

ANSWER

E

 

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