Refer to the figure below to answer the following questions.
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 15.3.1
-Refer to Figure 15.3.1.The tariff _______ the domestic production of shirts in Canada by _______ per year.

Question

Refer to the figure below to answer the following questions.
  The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 15.3.1
-Refer to Figure 15.3.1.The tariff _______ the domestic production of shirts in Canada by _______ per year.

Quizplus · Accepted Answer

Due to the tariff, the price of imported shirts will increase by $4, making the domestic price $24 per shirt. As a result, domestic producers will increase production and supply by 8 million shirts per year, as shown by the movement along the supply curve from point A to point B in the figure.

Refer to the Figure Below to Answer the Following Questions