Exhibit 19-5

-Refer to the graph in the exhibit.Suppose the world price of a baseball is $3, and Canada imposes a tariff of $1 per baseball.Which area represents the amount of tariff revenue the Canadian government collects?

Question

Exhibit 19-5
 
-Refer to the graph in the exhibit.Suppose the world price of a baseball is $3, and Canada imposes a tariff of $1 per baseball.Which area represents the amount of tariff revenue the Canadian government collects?

Quizplus · Accepted Answer

The tariff revenue is represented by the area that corresponds to the quantity of imports multiplied by the tariff per unit. In this case, area f represents the tariff revenue collected by the Canadian government.

Exhibit 19-5 -Refer to the Graph in the Exhibit.Suppose the World Price