The following diagram shows a country which is a price- taker in world trade for a particular product. It initially has a tariff on the product as shown by the vertical difference between the two world supply curves.
If a tariff were imposed, the tax revenue received would be area(s)
A) 1, 2, 3 and 4
B) 1 and 3
C) 3
D) 2 and 4
Correct Answer:
Verified
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A)
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