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The Figure Given Below Shows the Market for Shoes in the U.S

Question 54

Multiple Choice

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. Dd and Sd are the domestic demand and supply curves of shoes respectively. The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D<sub>d</sub> and S<sub>d</sub> are the domestic demand and supply curves of shoes respectively.   Following the imposition of tariff, the domestic consumer surplus _____ by the area _____. A) increases; c + d B) decreases; d C) decreases; (a + b + c +d)  D) increases; (b + d) Following the imposition of tariff, the domestic consumer surplus _____ by the area _____.


A) increases; c + d
B) decreases; d
C) decreases; (a + b + c +d)
D) increases; (b + d)

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