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The Figure Given Below Depicts the Negatively Sloped Demand and Positively

Question 54

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The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country.Figure 21.2
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 of wheat is $35 and a $15 tariff is imposed: A) domestic consumption will decrease from 400 to 350 bushels of wheat. B) the government will collect $200 in revenue from the tariff. C) domestic consumption will increase from 150 to 200 bushels of wheat. D) there will be no trade, and the domestic equilibrium quantity will prevail. E) domestic price for wheat will be higher than its world price.
-In Figure 21.2, if the world price of wheat is $35 and a $15 tariff is imposed:


A) domestic consumption will decrease from 400 to 350 bushels of wheat.
B) the government will collect $200 in revenue from the tariff.
C) domestic consumption will increase from 150 to 200 bushels of wheat.
D) there will be no trade, and the domestic equilibrium quantity will prevail.
E) domestic price for wheat will be higher than its world price.

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