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Refer to the Graph Above, Where Sd and Dd Are

Question 146

Multiple Choice

  Refer to the graph above, 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 graph above, 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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