Refer to Exhibit B The world price is Pw If a tariff is impo

Refer to Exhibit B. The world price is Pw. If a tariff is imposed, the price rises to Pw+T. Because of the tariff, government collects tariff revenues equal to the area of:

A. 1+3

B. 1+2+4

C. 1

D. 3

QUESTION 7 Exhibit B Price Sus 2 0 Quantity Refer to Exhibit B. The world price is Pw. If a tariff is imposed, the price rises to Pw+ T. Because of the tariff, government collects tariff revenues equal to the area of: Ob.1+2+4. Oc. 1. e. 1+2 QUESTION 8

Solution: 3

Working: The government collects tariff revenues equal to the area of 3 representing the tariff rate multiplied by the number of units produced

Refer to Exhibit B. The world price is Pw. If a tariff is imposed, the price rises to Pw+T. Because of the tariff, government collects tariff revenues equal to

Refer to Exhibit B The world price is Pw If a tariff is impo

Solution

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