Solved

Suppose That the World Price of Kiwi Fruit ($10 Per

Question 45

Multiple Choice

Suppose that the world price of kiwi fruit ($10 per box) is below the domestic price ($12 per box) .A tariff of $1 per box would:


A) cause foreign producers to be better off,because the price they charge is now higher by $1 per box.
B) cause domestic producers to be worse off by $5 per box.
C) allow domestic consumers to enjoy kiwi fruit for $5 more per box than the free trade price,but still $2 less than the domestic price.
D) allow domestic consumers to enjoy kiwi fruit for $1 more per box than the free trade price,but still $1 less than the domestic price.
E) cause domestic producers to be worse off by $10 per box.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents