-Without a tariff the price of imports would be:
A) a + b + c + d.
B) b + d.
C) P.
D) Pw.
E) zero.

Name: -Without a tariff the price of imports would be: A) a + b + c + d. B) b + d. C) P. D) Pw. E) zero.
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Question

-Without a tariff the price of imports would be:
A) a + b + c + d. 
B) b + d. 
C) P. 
D) Pw. 
E) zero.

Quizplus · Accepted Answer

Without a tariff, the price of imports would be equal to the world price, which is represented by Pw. Tariffs are taxes on imports that raise the cost above the world price, so without them, the price defaults to Pw.

-Without a Tariff the Price of Imports Would Be