Tariffs raise prices, benefiting producers but harming consumers

Steps:

• A tariff on imported cars increases their price in country X by adding a tax on imports.
• This makes domestic cars relatively cheaper and more competitive.
• Domestic producers sell more, gaining revenue; government collects tariff revenue.
• Consumers pay higher prices for both imported and domestic cars.

Why A is correct:

• Consumers face higher car prices due to the tariff's cost increase on imports, reducing their purchasing power per the law of supply and demand.

Why the others are wrong:

• B: Government gains revenue from collecting the tariff on imports.
• C: Domestic producers benefit from reduced foreign competition and higher sales/prices.
• D: Car workers gain from expanded domestic production and job opportunities.

Final answer: A