Solved

Consider a Market in a Small Country with a Domestic

Question 2

Multiple Choice

Consider a market in a small country with a domestic demand curve of P = 60 - 2q and P = q.The world price for the good is $5.The government imposes an import tariff of $10 per unit.Which statement is true?


A) Imports fall by 15 units due to the imposition of the tariff.
B) Imports fall by 25 units due to the imposition of the tariff.
C) Imports fall by 10 units due to the imposition of the tariff.
D) Imports fall by 5 units due to the imposition of the tariff.
E) None of the above.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents