Figure 17-10

-Refer to Figure 17-10.With the tariff,the domestic price and domestic quantity demanded are

Question

Figure 17-10
 
-Refer to Figure 17-10.With the tariff,the domestic price and domestic quantity demanded are

Quizplus · Accepted Answer

With the presence of the tariff, the domestic price increases from P₁ to P₂ and domestic quantity demanded decreases from Q₁ to Q₃. This is shown by the movement from point A to point B in the graph. Therefore, the correct choice is D, which represents the new equilibrium price and quantity with the tariff.

Figure 17-10 -Refer to Figure 17-10.With the Tariff,the Domestic Price and Domestic