The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 33-4
-Refer to Figure 33-4.Suppose the world price of bicycles is $500 and Canada has in place a 50% tariff on this good.The deadweight loss to the Canadian economy resulting from this tariff is ________ per year.
A) $0
B) $0.5 million
C) $1.0 million
D) $1.5 million
E) $2.0 million
Correct Answer:
Verified
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A)a
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