You are given the following information pertaining to large country B with respect to good W (which is produced at home and also imported), both under free trade and with a $10.00 import tariff in place:

\begin{array}{lr}\text { domestic price of W under free trade }&\$40\\\text {world price of W (i.e., price of W from rest-of-the}\\\text {world) under free trade}&\$40\\\text { domestic price of } \mathrm{W} \text { after imposition of tariff }&\$44\\\text {world price of W (i.e., price of W from rest-of-the}\\\text {world after imposition of tariff}&\$34\\\text { domestic production of W under free trade } & 80 \text { units } \\\text { domestic production of W after imposition of tariff } & 94 \text { units } \\\text { domestic consumption of W under free trade } & 120 \text { units } \\\text { domestic consumption of W after imposition of tariff } & 112 \text { units }\end{array}

Given this information, and assuming that demand and supply curves are straight lines, what is the loss of consumer surplus in country B that occurs because of the imposition of the tariff?
A) $44
B) $72
C) $448
D) $464

In the Large Country Case, the Imposition of an Import

Multiple Choice

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