Assume the United States Is a Large Consumer of Steel

Multiple Choice

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W.
Figure 4.2. Import Tariff Levied by a "Large" Country ?
-According to Figure 4.2, the tariff's terms-of-trade effect equals

A) $300.
B) $400.
C) $500.
D) $600.