The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
FIGURE 33-3 Refer to Figure 33-3.If Canada imposes a tariff of $t per cotton towel,the deadweight loss to the Canadian economy is shown by area
A) A + B + C.
B) A + B + C + D.
C) B + D.
D) C.
E) C + H.
Correct Answer:
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