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.The deadweight loss to the Canadian economy is represented by the area
A) D + E + F + G + H.
B) A + B + C.
C) E + H.
D) E + F + G + H.
E) B + C.
Correct Answer:
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