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Suppose That the World Price of TVs Is $500 and the Government

Question 110

Multiple Choice

Suppose that the world price of TVs is $500 and the government imposes a $100 tariff. According to the figure, the tariff causes total surplus to decrease by:
Suppose that the world price of TVs is $500 and the government imposes a $100 tariff. According to the figure, the tariff causes total surplus to decrease by:   A) $1,500,000. B) $3,000,000. C) $4,500,000. D) $6,000,000.


A) $1,500,000.
B) $3,000,000.
C) $4,500,000.
D) $6,000,000.

Correct Answer:

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