The Figure Below Shows the Demand (D) and Supply (S)

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P₁: Price of the good in the international market.P₂: Price of the good in the domestic market after the imposition of tariff by the government.P₃: No-trade price of the good in the domestic market.
-Which of the following would result from a tariff?

A) An increase in government budget deficit
B) An increase in domestic production
C) A greater volume of international trade
D) Increased domestic consumption
E) Decrease in prices of the imported goods

Correct Answer:

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