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 34- 2
-Refer to Figure 34- 2. If Canada initially has no tariff on denim jeans but then imposes a tariff of $t per pair of jeans, Canada's imports will
A) decrease from (Q5 - Q3) to (Q4 - Q2) .
B) decrease from (Q5 - Q1) to (Q4 - Q2) .
C) increase from (Q4 - Q2) to (Q5 - Q1) .
D) increase from (Q4 - Q2) to (Q5 - Q3) .
E) decrease from(Q5 - Q3) to (Q3 - Q1) .
Correct Answer:
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