Refer to the figure below to answer the following questions. Figure 7.3.1
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.
-Refer to Figure 7.3.1.The Canadian government's revenue from the tariff is ________.
A)$64 million
B)$32 million
C)$128 million
D)$48 million
E)$480 million

Question

Refer to the figure below to answer the following questions.  Figure 7.3.1
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.
-Refer to Figure 7.3.1.The Canadian government's revenue from the tariff is ________.
A)$64 million 
B)$32 million 
C)$128 million 
D)$48 million 
E)$480 million

Quizplus · Accepted Answer

The Canadian government's revenue from the tariff is calculated by multiplying the tariff rate per unit by the quantity of imports. In this case, without the specific figure, the general approach is to identify the area on the graph that represents government revenue, which is typically the rectangle formed by the quantity of imports and the tariff rate. The correct answer is provided as $64 million, suggesting that this area corresponds to that value in the context of the question.

Refer to the Figure Below to Answer the Following Questions