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    Exam 9: Comparative Advantage and the Gains From International Trade
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Suppose the U

Question 214

Question 214

Multiple Choice

  Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 9-5 shows the impact of this tariff. -Refer to Figure 9-5.The increase in domestic producer surplus as a result of the tariff is equal to A) $11.25 million. B) $18 million. C) $32.5 million. D) $45 million. Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 9-5 shows the impact of this tariff.
-Refer to Figure 9-5.The increase in domestic producer surplus as a result of the tariff is equal to


A) $11.25 million.
B) $18 million.
C) $32.5 million.
D) $45 million.

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