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The Figure Given Below Depicts the Negatively Sloped Demand and Positively

Question 47

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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    -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) make domestic consumers worse off as they would be paying $1 more than the domestic price. D) make domestic consumers pay $1 more 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.
-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) make domestic consumers worse off as they would be paying $1 more than the domestic price.
D) make domestic consumers pay $1 more 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.

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