Figure 17-12
-If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, the government revenue from 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 government revenue from a tariff of $0.50 per unit is represented by area

Quizplus · Accepted Answer

The government revenue from a tariff is represented by the area that corresponds to the tariff per unit multiplied by the quantity of imports, which is area e.

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