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.
