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-Refer to Exhibit 34-3

Question 115

Multiple Choice

-Refer to Exhibit 34-3.The world price is P<sub>W</sub>.If a tariff is imposed,the price rises to P<sub>W</sub> + T.Because of the tariff,producers' surplus is __________ by an amount equal to the area of __________. A) increased; 1 + 2 B) decreased; 1 C) increased; 3 + 4 D) increased; 1 E) decreased; 3
-Refer to Exhibit 34-3.The world price is PW.If a tariff is imposed,the price rises to PW + T.Because of the tariff,producers' surplus is __________ by an amount equal to the area of __________.


A) increased; 1 + 2
B) decreased; 1
C) increased; 3 + 4
D) increased; 1
E) decreased; 3

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