The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above, the deadweight loss from the tariff is

Question

Quizplus · Accepted Answer

The deadweight loss from the tariff is the area of the triangle formed by the difference between the domestic price with the tariff and the world price. This area is $32 million.

The Figure Shows the Market for Shirts in the United