Exhibit 17.3

-Refer to Exhibit 17.3, which shows the supply of and the demand for baseballs in the United States. If the world price is $3 per baseball and a tariff of $1 per baseball is imposed, then the tariff revenue collected by the United States government is shown by area _____

Question

Exhibit 17.3
 
-Refer to Exhibit 17.3, which shows the supply of and the demand for baseballs in the United States. If the world price is $3 per baseball and a tariff of $1 per baseball is imposed, then the tariff revenue collected by the United States government is shown by area _____

Quizplus · Accepted Answer

The tariff revenue is calculated by multiplying the tariff per unit by the quantity of imports. Area e represents the tariff revenue, as it is the area between the world price plus tariff and the world price, over the quantity of imports.

Exhibit 17.3 -Refer to Exhibit 17.3, Which Shows the Supply of and the Supply