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The Following Image Shows the Market for Wheat for the Country

Question 65

Multiple Choice

The following image shows the market for wheat for the country of Palatino.SD is the domestic supply of wheat,and DD is the domestic demand for wheat.Suppose the world price of wheat is $9 per bushel of wheat.Suppose a specific tariff of $6 is imposed on each bushel of wheat imported.Government revenue from the tariff equals:
The following image shows the market for wheat for the country of Palatino.S<sup>D</sup> is the domestic supply of wheat,and D<sup>D</sup> is the domestic demand for wheat.Suppose the world price of wheat is $9 per bushel of wheat.Suppose a specific tariff of $6 is imposed on each bushel of wheat imported.Government revenue from the tariff equals:   A) $45,000. B) $3,000,000. C) $1,800,000. D) $900,000. E) $50,000.


A) $45,000.
B) $3,000,000.
C) $1,800,000.
D) $900,000.
E) $50,000.

Correct Answer:

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