Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.

-Refer to the figure above.With the tariff,the government collects
A)$50,000.
B)$60,000.
C)$100,000.
D)$220,000.

Question

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
 
-Refer to the figure above.With the tariff,the government collects
A)$50,000. 
B)$60,000. 
C)$100,000. 
D)$220,000.

Quizplus · Accepted Answer

The government collects tariff revenue based on the quantity of imports after the tariff is imposed, multiplied by the tariff rate per unit. The area representing this revenue is the rectangle formed by the height of the tariff (the difference between the world price and the price after the tariff) and the width of the quantity of imports after the tariff.

Answer the Question(s)below Based Upon the Following Diagram