Multiple Choice
Exhibit 19-10
In Exhibit 19-10 the domestic demand for sugar is represented by D and the domestic supply is represented by S and the world price of sugar is $.13 per pound with a domestic tariff of $.02 per pound of sugar.This tariff will reduce the consumer surplus enjoyed by domestic consumers by
A) $100, 000
B) $220, 000
C) $370, 000
D) $520, 000
E) $610, 000
Correct Answer:
Verified
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