Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W.
Figure 4.2. Import Tariff Levied by a "Large" Country ?
-Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals
A) $450.
B) $550.
C) $650.
D) $750.

Question

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W.
Figure 4.2. Import Tariff Levied by a "Large" Country  ?
-Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals
A) $450. 
B) $550. 
C) $650. 
D) $750.

Quizplus · Accepted Answer

The Answer of Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W.
Figure 4.2. Import Tariff Levied by a "Large" Country  ?
-Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals
A) $450. 
B) $550. 
C) $650. 
D) $750.

Assume the United States Is a Large Consumer of Steel