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    Macroeconomics Study Set 35
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    Exam 7: Comparative Advantage and the Gains From International Trade
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    Figure 7-2 Suppose the U
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Figure 7-2 Suppose the U

Question 79

Question 79

Multiple Choice

Figure 7-2 Figure 7-2   Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff. -Refer to Figure 7-2.The tariff causes domestic consumption of coffee A) to fall by 27 million pounds. B) to fall by 7 million pounds. C) to rise by 6 million pounds. D) to rise by 20 million pounds. Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff.
-Refer to Figure 7-2.The tariff causes domestic consumption of coffee


A) to fall by 27 million pounds.
B) to fall by 7 million pounds.
C) to rise by 6 million pounds.
D) to rise by 20 million pounds.

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