Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff





a. Q3 minus Q1.

b. Q4 minus Q1.

c. Q2 minus Q1.

d. Q4 minus Q3.

c. Q2 minus Q1.

Economics

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If you travel to Mexico you will often see currency exchange businesses along the way as you approach the border

Even though each of these businesses is essentially "selling" the same product (i.e. Mexican pesos) how is it that some of them are able to charge more for the peso than others?

Economics

When a person holds money, they give up

A) the pleasure associated with spending money. B) the pleasure associated with saving money. C) the interest that could have been earned if the money had been changed into an interest-bearing asset. D) nothing, since the person can always use the money to buy goods or services or interest-bearing assets.

Economics