The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
FIGURE 34- 3
-Refer to Figure 34- 3.If Canada imposes a tariff of $t per cotton towel,the Canadian government's tariff revenues will be equal to the area
A) A + B + C + D.
B) C.
C) C + H.
D) A + B + C.
E) B + C + D.
Correct Answer:
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