Question: Suppose that the United States is a major buyer of TV sets and that no TV sets are made domestically. That is, the supply curve that the US faces for imported TVs is upward sloping. Currently, there is a $20 per TV tariff.

a. True, false, or uncertain: The US would be worse off if it repealed this tariff. Make your argument using a picture that shows consumer surplus and tariff revenue before and after the tariff is repealed.

b. How would your answer change if the US faced a flat supply curve for TV’s.