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 the economy was originally operating under free trade, after the introduction of the tariff the overall impact on surplus would be a net:
A) gain of areas I + J + K + L.
B) loss of areas I + J + K + L.
C) loss of areas I + L.
D) gain of areas F + G + H + I + J + K + L.
Correct Answer:
Verified
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