This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, the amount of consumer surplus domestic consumers enjoy once a tariff has been imposed is:
A. ABC
B. ABCDEFGHIJKL
C. A
D. ABCDEFG
Answer: D
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By definition, currency depreciation occurs when the value of
A) all currencies fall relative to gold. B) one currency falls relative to another currency. C) one currency rises relative to another currency. D) gold falls relative to the value of currencies.
The short-run supply curve for the perfectly competitive firm is the portion of its
A) MC curve above the AVC curve. B) MC curve above the AFC curve. C) MC curve above the ATC curve. D) MC curve above the MR curve.
A cable television broadcast of a movie is
a. excludable and rival in consumption. b. excludable and not rival in consumption. c. not excludable and rival in consumption. d. not excludable and not rival in consumption.
An outward shift in the consumer demand for wheat will
A) raise the price of wheat and shift inward the marginal revenue product of labor producing wheat. B) lead to more capital and less labor used in producing wheat. C) raise the price of wheat and shift out the marginal revenue product of labor producing wheat. D) lead to downward pressure on the wages of those producing wheat.