The table above gives the domestic demand and supply schedul

The table above gives the domestic demand and supply schedules for a good. Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff. How much will the government collect as tariff revenue?

Solution

At $60/unit Qs=16units. For 1unit govt. revenue=$20, hence for 16units it will have=$320. So that A is correct.

 The table above gives the domestic demand and supply schedules for a good. Suppose the world price of the good is $40 and the government imposes a $20 per unit

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