Figure 17-12
-In Figure 17-12, with a tariff of $0.50 per unit and a world price of $1.00,
A) 25 units will be exported
B) 25 units will be imported
C) 50 units will be exported
D) 50 units will be imported
E) 10 units will be exported

Question

Figure 17-12 
-In Figure 17-12, with a tariff of $0.50 per unit and a world price of $1.00,
A) 25 units will be exported 
B) 25 units will be imported 
C) 50 units will be exported 
D) 50 units will be imported 
E) 10 units will be exported

Quizplus · Accepted Answer

With a tariff of $0.50 per unit and a world price of $1.00, the domestic price becomes $1.50. If the domestic supply at this price is less than domestic demand, the difference will be imported.

Figure 17-12 -In Figure 17-12, with a Tariff of $0.50 Per Unit