The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 34- 4
-Refer to Figure 34- 4.Suppose the world price of bicycles is $200 and Canada has in place a 50% import tariff on this good.The Canadian government will collect tariff revenue in the amount of per year.
A) $1.0 million
B) $1.5 million
C) $2.5 million
D) $2.0 million
E) $0.5 million
Correct Answer:
Verified
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