the government gains by collecting tariff revenue. the is equal to the tariff rate t times the volume of imports Qt = D2 - S2. the government's revenue is equal to the sum of the two areas c and e. overall cost-benefit evaluation of a tariff depends on how much we value a dollar's worth of benefit to each group. if, for example, the producer gain accrues mostly to wealthy owners of resources, while the consumers are poorer than average, the tariff will be viewed differently than if the good is a luxury bought by the affluent but produced by low-wage workers. further ambiguity is introduced by the role of the government; will it use its revenue to finance vitally needed public services or waste it on $1000 toilet seats?