Refer to the figure below to answer the following questions.

The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ the domestic production of shirts in Canada by ________ per year.
A)increases; 8 million
B)decreases; 16 million
C)increases; 4 million
D)decreases; 8 million
E)increases; 24 million

Question

Refer to the figure below to answer the following questions.
  
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ the domestic production of shirts in Canada by ________ per year.
A)increases; 8 million 
B)decreases; 16 million 
C)increases; 4 million 
D)decreases; 8 million 
E)increases; 24 million

Quizplus · Accepted Answer

The tariff increases the domestic production of shirts in Canada by 4 million per year.

Refer to the Figure Below to Answer the Following Questions