Consider two hypothetical countries, Alagir and Ertil. Both countries produce iGadgets, and the price of iGadgets is higher in Alagir than in Ertil. If Alagir and Ertil open to trade, producers in would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition. Which of the following statements about the effects of the tariff compared to free trade are correct? a. In Alagir, consumption decreases and domestic production increases.
b. The tariff always raises the price Of imported iGadgets above their domestic price.
c. The tariff need not increase the price Of the imported iGadget above its domestic price.
d. In Ertil, consumption decreases and domestic production increases.
e. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.