Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers Question 31 options: increases consumer surplus. increases total welfare. increases the deadweight loss. None of the above

• increases the deadweight loss.

Explanation:

This causes deadweight loss because the tariffs will decrease the amount of goods imported into the country, lowering competition in the domestic markets and eventually raising the prices. This is a deadweight loss because the buyers and seller will change their behavior after these changes. For the buyers, they will decrease the demand for the high-priced goods while the seller will increase amount of goods he/she supplies because they can earn more than before.