Unformatted text preview: Use the following diagram to answer the next 2 questions: Price Domestic Supply World Price plus tariff
I tariff .
World Price Domestic Demand ti
0 Q0 Q1 Q3 Q4 Quanty C+F+G+H C+F+G (c) A+B+E (d A+ B+C+E+F+G+H
@) B+C+E+F+G+H ‘Ilv
In the ﬁgure shown, as a result of the tariff, consumer surplus by
, producer surplus by , government tariff revenue
is , and deadweight loss is increases, F + G + H, decreases, C, G, E
& decreases, C + F + G + H, increases, C, G, F + H
c decreases, C + F + G + H, increases, C, F + G + H, zero
‘(dL increases, C + F + G + H, decreases, C, F + G, H ...
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- Fall '10