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Given the Following Information for (Small) Country a Concerning a Good

Question 29

Multiple Choice

Given the following information for (small) country A concerning a good X:
 free trade price in A $20 per unit  tariff rate 20 percent  price in A, with tariff $24 per unit  consumption in A, free trade 1,000 units  consumption in A, with tariff 900 units  production in A, free trade 600 units  production in A, with tariff 800 units \begin{array} { l r } \text { free trade price in A } & \$ 20 \text { per unit } \\\text { tariff rate } & 20 \text { percent } \\\text { price in A, with tariff } & \$ 24 \text { per unit } \\\text { consumption in A, free trade } & 1,000 \text { units } \\\text { consumption in A, with tariff } & 900 \text { units } \\\text { production in A, free trade } & 600 \text { units } \\\text { production in A, with tariff } & 800 \text { units }\end{array}


A) The government revenue generated by the tariff is $800.
B) The decrease in consumer surplus because of the tariff is $4,000.
C) The increase in producer surplus because of the tariff is $3,200.
D) The net welfare loss for A from the tariff is $600.

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