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Refer to the Accompanying Graph, Where Sd and Dd Are

Question 97

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  Refer to the accompanying graph, where S<sub>d</sub> and D<sub>d</sub> are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be A) $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80. B) $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80. C) $400, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80. D) $240, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $120. Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be


A) $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80.
B) $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80.
C) $400, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80.
D) $240, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $120.

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