Multiple Choice
Scenario: The following figure shows the demand curve, D, and the supply curve, S, of chairs in Barylia. Barylia is open to free trade. The world price of chairs is $3, and the government of Barylia decides to impose a $1 tariff on the import of chairs.
-Refer to the scenario above.What is the domestic price of chairs in Barylia in the absence of trade?
A) $2
B) $3
C) $4
D) $6
Correct Answer:

Verified
Correct Answer:
Verified
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