The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical.
FIGURE 34- 2
-Refer to Figure 34- 2.Suppose Canada has free trade in jeans and then imposes a tariff of $t per pair.Canada's consumption will then be at the quantity:

Question

The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical.
  FIGURE 34- 2
-Refer to Figure 34- 2.Suppose Canada has free trade in jeans and then imposes a tariff of $t per pair.Canada's consumption will then be at the quantity:

Quizplus · Accepted Answer

Before the imposition of the tariff, Canada's consumption was at point Q4, where the domestic demand curve intersects the world price line PW. When a tariff of t is imposed, the effective price to Canadian consumers increases from PW to PW+t. This results in a decrease in consumption to Q3. Therefore, the answer is D.

The Diagram Below Shows the Domestic Demand and Supply Curves