Figure 17-12
-If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Question

Figure 17-12 
-If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Quizplus · Accepted Answer

The loss of consumer surplus due to a tariff is represented by the areas that consumers lose, which are typically the areas between the world price and the new higher price due to the tariff. In this case, it includes the areas c, i, e, and f.

Figure 17-12 -If the Country Illustrated in Figure 17-12 Is Initially Trading