The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts.
-The figure above shows that the government revenue from the tariff is

Question

Quizplus · Accepted Answer

The government revenue from a tariff is calculated by multiplying the tariff rate per unit by the quantity of imports. In the figure, the tariff raises the price from the world price to a higher domestic price, reducing imports. The area representing government revenue is the rectangle formed by the tariff rate (vertical distance between the world price and the domestic price after tariff) and the quantity of imports (horizontal distance). Without seeing the figure, the correct answer cannot be determined directly from the question. However, based on common scenarios where tariffs are applied, the government revenue is typically represented by such a rectangle in economic diagrams.

The Figure Above Shows the U