Exhibit 19-8

-Exhibit 19-8 shows the demand and supply of shirts for the country of Eragos.If the world price is $4 per shirt,and the government of Eragos imposes a tariff of $1,the consumer surplus is:

Question

Exhibit 19-8
 
-Exhibit 19-8 shows the demand and supply of shirts for the country of Eragos.If the world price is $4 per shirt,and the government of Eragos imposes a tariff of $1,the consumer surplus is:

Quizplus · Accepted Answer

A tariff increases the price of imported goods, reducing consumer surplus by the area between the world price and the new price after the tariff, multiplied by the quantity.

Exhibit 19-8 -Exhibit 19-8 Shows the Demand and Supply of Shirts for Supply