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Suppose that in the national market for carrots, demand is downward sloping and supply is upward sloping.Initially, the country does not trade. The nation starts

Suppose that in the national market for carrots, demand is downward sloping and supply is upward sloping.Initially, the country does not trade. The nation starts importing apples from abroad at the world price. To protectdomestic producers, the government imposes a tariff, such that the new price (world price + tariff) is still belowthe domestic equilibrium. If we compare the new situation (after trade and the tariff) to the initial situation(no trade at all), which of the following statements is true?

  1. With the tariff, producer surplus is lower and total surplus is higher
  2. With the tariff, total surplus is higher and the change in consumer surplus can't be determined
  3. With the tariff, consumer surplus is higher and the change in total surplus can't be determined
  4. With the tariff, producer surplus is lower and total surplus is lower

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