Exhibit 18-4
-If the country illustrated in Exhibit 18-4 is initially trading without restrictions at a world price of $1.00, the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Question

Exhibit 18-4 
-If the country illustrated in Exhibit 18-4 is initially trading without restrictions at a world price of $1.00, the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Quizplus · Accepted Answer

The loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by the sum of areas c, i, e, and f. Therefore, the answer is (C).

Exhibit 18-4 -If the Country Illustrated in Exhibit 18-4 Is Initially Trading