The Diagram Below Shows Supply and Demand Curves for Bicycles

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical. FIGURE 33-4 Refer to Figure 33-4.Suppose the world price of bicycles is $500 and Canada has in place a 50% tariff on this good.The deadweight loss to the Canadian economy resulting from this tariff is ________ per year.

A) $0
B) $0.5 million
C) $1.0 million
D) $1.5 million
E) $2.0 million