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Scenario: the Domestic Supply and Demand of a Good in the United

Question 107

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Scenario: The domestic supply and demand of a good in the United States is shown in the figure below. Suppose the world price of this good is $4. Suppose the United States is considering levying a $2 tariff per unit on imports of this good.
Scenario: The domestic supply and demand of a good in the United States is shown in the figure below. Suppose the world price of this good is $4. Suppose the United States is considering levying a $2 tariff per unit on imports of this good.    -Refer to the scenario above.Before the tariff is imposed,the consumer surplus in the United States was ________; after the tariff,the consumer surplus becomes ________. A)  $360; $160 B)  $160; $640 C)  $640; $490 D)  $490; $360
-Refer to the scenario above.Before the tariff is imposed,the consumer surplus in the United States was ________; after the tariff,the consumer surplus becomes ________.


A) $360; $160
B) $160; $640
C) $640; $490
D) $490; $360

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