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The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

Question 116

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.   If this economy was previously open to free trade, the introduction of the tariff will cause consumers to: A) gain the surplus in areas H + I + J + K + L. B) lose the surplus in areas H + I + J + K + L. C) gain the surplus in areas D + E. D) lose the surplus in areas D + E. If this economy was previously open to free trade, the introduction of the tariff will cause consumers to:


A) gain the surplus in areas H + I + J + K + L.
B) lose the surplus in areas H + I + J + K + L.
C) gain the surplus in areas D + E.
D) lose the surplus in areas D + E.

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