Use the following to answer questions :
Figure 18-4
-Suppose the country, importing oil in Figure 18-4 puts on a prohibitive tariff.The smallest prohibitive tariff would be:
A)$0, since there is no trade at the current price.
B)$5.
C)$10.
D)$20.
E)impossible to determine exactly without more information.

Question

Use the following to answer questions :
Figure 18-4 
-Suppose the country, importing oil in Figure 18-4 puts on a prohibitive tariff.The smallest prohibitive tariff would be:
A)$0, since there is no trade at the current price. 
B)$5. 
C)$10. 
D)$20. 
E)impossible to determine exactly without more information.

Quizplus · Accepted Answer

Without the specific details of Figure 18-4, it is impossible to determine the exact amount of the prohibitive tariff needed to stop imports.

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