Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With a per unit tariff of P_cP_t, the total amount of tariff revenue collected on this product will be:

Question

Quizplus · Accepted Answer

Tariff revenue is equal to the amount of the tariff multiplied by the quantity of imports. In this case, the per unit tariff is P_cP_t and the quantity of imports is wy. Thus, the total amount of tariff revenue collected is P_cP_t times wy, which is answer choice C.

Refer to the Above Diagram, Where Sd and Dd Are

Refer to the Above Diagram, Where S_d and D_d Are