The above figure shows the U.S. market for replacement cell phone batteries. Area B + area D is the
A) tariff revenue.
B) decrease in consumer surplus due to the tariff.
C) deadweight loss from tariff.
D) increase in producer surplus due to the tariff.
E) gain in total surplus due to the tariff.
C
You might also like to view...
Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue. B) discover other ways to attract additional customers. C) have no incentive to improve the quality of their products. D) not compete against one another. E) want to attract additional firms into the industry to increase the size of the cartel.
An increase in population growth will lead to a ________ in the steady-state capital—labor ratio and a ________ in output per worker
A) fall; fall B) fall; rise C) rise; rise D) rise; fall
Why are a large number of IT jobs being outsourced to China and India?
a. India and China experience large balance of payment deficits. b. India and China are highly capital intensive economies. c. India and China have abundant supply of cheap skilled labor. d. India and China offers the best working conditions for the employees. e. India and China experiences balance of payment surpluses.
What usually happens after an adverse supply shock?
What will be an ideal response?