The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. The imposition of a tariff on shoes caused economic welfare in the U.S. to _____ by an amount measured by the area _____. A)fall; c B)fall; (b + d) C)rise; (b + c+ d) D)rise; (a + c)

Question

Quizplus · Accepted Answer

The Answer of The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. The imposition of a tariff on shoes caused economic welfare in the U.S. to _____ by an amount measured by the area _____. A)fall; c B)fall; (b + d) C)rise; (b + c+ d) D)rise; (a + c)

The Figure Given Below Shows the Market for Shoes in the U.S