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 33-2
-Refer to Figure 33-2.Suppose Canada has free trade in jeans and then imposes a tariff of $t per pair.Canadian jean producers' revenues will increase by the area equal to
A) A + B + F + J.
B) D + E + I.
C) E + F + G + H.
D) F + G.
E) F + G + H.
Correct Answer:
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