If, at the world price, domestic producers are producing and selling 100 units of a good, then at the world price plus tariff it follows that
A) they will be producing and selling more than 100 units of the good.
B) they will be producing and selling fewer than 100 units of the good.
C) producers' surplus will be less than what it is when domestic producers produce and sell 100 units.
D) consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units.
E) c and d
A
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See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?
A) 0 B) 24 C) 40 D) 60 E) none of the above
In the classical model, beginning from an equilibrium in which the government is running a budget surplus,
a. this will lower the wage rate b. the demand for loanable funds will be horizontal c. an increase in government spending will crowd out more than an equal amount of private spending d. an increase in government spending will crowd out an equal amount of private spending e. an increase in government spending will crowd out less than an equal amount of private spending