The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade.
B) deadweight loss from tariff.
C) tariff revenue.
D) increase in producer surplus due to the tariff.
E) gain in total surplus due to the tariff.
A
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Which of the following will lead to a movement along the same demand curve?
A. Changes in income B. Changes in the price of substitute goods C. Changes in the price of the product D. Changes in the preference of the consumer
In economics, the term ________ means "additional" or "extra."
A) allocative B) equity C) marginal D) optimal
The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:
a. GDP. b. income. c. saving. d. none of these.
"Learning by doing" allows an incumbent firm to deter entry because
A) it raises the incumbent's marginal cost B) it lowers the incumbent's marginal cost C) it shifts the demand for the good rightward D) it is only available to incumbents and not future entrants