Figure 9.5.1
-Refer to Figure 9.5.1 above. A $50 tariff would result in domestic consumption of:
A) 600, domestic production of 100, and imports of 500.
B) 500, domestic production of 200, and imports of 300.
C) 400, domestic production of 300, and imports of 100.
D) 300, domestic production of 400, and exports of 100.
E) 200, domestic production of 500, and exports of 300.

Question

Figure 9.5.1
-Refer to Figure 9.5.1 above. A $50 tariff would result in domestic consumption of:
A) 600, domestic production of 100, and imports of 500. 
B) 500, domestic production of 200, and imports of 300. 
C) 400, domestic production of 300, and imports of 100. 
D) 300, domestic production of 400, and exports of 100. 
E) 200, domestic production of 500, and exports of 300.

Quizplus · Accepted Answer

A $50 tariff increases the domestic price, reducing consumption to 400, increasing domestic production to 300, and reducing imports to 100.

Figure 9.5.1 -Refer to Figure 9.5.1 Above. a $50 Tariff Would Result