Exhibit 19.2

-Refer to Exhibit 19.2,which shows U.S.demand for and domestic supply of a good.Suppose the world price of the good is $1.00 per unit,and a specific tariff of $0.50 per unit is imposed on each unit of the imported good.In such a case,the government revenue from a tariff of $0.50 per unit is represented by area _____

Question

Exhibit 19.2
 
-Refer to Exhibit 19.2,which shows U.S.demand for and domestic supply of a good.Suppose the world price of the good is $1.00 per unit,and a specific tariff of $0.50 per unit is imposed on each unit of the imported good.In such a case,the government revenue from a tariff of $0.50 per unit is represented by area _____

Quizplus · Accepted Answer

The government revenue from a tariff is calculated as the tariff rate multiplied by the quantity of imports. In this case, the area representing government revenue is area e.

Exhibit 19.2 -Refer to Exhibit 19.2,which Shows U.S.demand for and Domestic Supply