The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2

-In Figure 21.2, if the world price per bushel of wheat is $25, and a tariff of $10 is imposed by the domestic government, what is the domestic demand?

Question

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2
 
-In Figure 21.2, if the world price per bushel of wheat is $25, and a tariff of $10 is imposed by the domestic government, what is the domestic demand?

Quizplus · Accepted Answer

The correct answer is A because the domestic demand is 400 bushels when the world price per bushel of wheat is $25 and a tariff of $10 is imposed by the domestic government.

The Figure Given Below Depicts the Negatively Sloped Demand and Positively