If a small country imposes a tariff on imported motorcycles
A. the surplus of both the domestic producers and consumers of motorcycles will decline.
B. the surplus of both the domestic producers and consumers of motorcycles will increase.
C. the surplus of the domestic producers of motorcycles will increase, but the surplus of the domestic consumers will decline.
D. the surplus of the domestic producers of motorcycles will decline, but the surplus of the domestic consumers will increase.
Answer: C
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As a percentage of GDP, the federal government expenditure which is expected to increase the most between 2012 and 2042 is
A) Social Security. B) Medicare and Medicaid. C) the net interest on the federal debt. D) national defense.
Refer to the figure in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The efficiency loss of this tax will be area:
A. ABCE.
B. ABCE + ECF.
C. 0AEG.
D. ECF.