The diagram below shows the domestic demand and supply curves for denim jeans in Canada. The prevailing world price is P W . Assume that all jeans are identical.
FIGURE 34- 2
-Refer to Figure 34- 2. If Canada imposes a tariff of $t per pair of jeans, the deadweight loss to the Canadian economy is represented by the area

Question

The diagram below shows the domestic demand and supply curves for denim jeans in Canada. The prevailing world price is P W . Assume that all jeans are identical.
  FIGURE 34- 2
-Refer to Figure 34- 2. If Canada imposes a tariff of $t per pair of jeans, the deadweight loss to the Canadian economy is represented by the area

Quizplus · Accepted Answer

The deadweight loss from a tariff is represented by the areas of the triangles that show the loss in consumer and producer surplus that is not offset by the gain in government revenue, which are E and H.

The Diagram Below Shows the Domestic Demand and Supply Curves