Advocates of steel tariffs to protect American steel firms realize that when imposing such tariffs the gains of firms are outweighed by the losses to consumers. This implies that such advocates value producer surplus more than consumer surplus. such advocates want to help consumers. such advocates value consumer surplus more than producer surplus. such advocates value producer surplus and consumer surplus equally

• such advocates value producer surplus more than consumer surplus.

Explanation:

Producer surplus is the difference between amount the producer is willing to supply goods for, and the actual amount they receive when they trade. Tariffs on imported steel increases the cost of foreign steel as well as the willingness of foreign importers to trade their steel in America. This gives the domestic firms more power over the market and also the ability to increase prices due to less foreign competition. In other words, the consumer will pay higher prices than before. Now, the actual amount the domestic firms receive from steel is relatively higher than before and so high than the amount they are willing to supply at, which raises producer surplus. As the price increases, the incentive for producing more goods increases, thereby increasing the producer surplus. On the other hand, the consumer is paying high prices than before which reduces consumer surplus when you consider the maximum price they are willing to pay for the product.