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Figure: The Market for Laptop Sleeves
-(Figure: The Market for Laptop Sleeves) Look at the figure The Market for Laptop Sleeves. Assume that S and D are the domestic supply and demand curves and the world price is P_W. Identify the area of deadweight loss when a tariff raises the domestic price from the world price to P_T.

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Use the following to answer questions :
Figure: The Market for Laptop Sleeves

-(Figure: The Market for Laptop Sleeves) Look at the figure The Market for Laptop Sleeves. Assume that S and D are the domestic supply and demand curves and the world price is P_W. Identify the area of deadweight loss when a tariff raises the domestic price from the world price to P_T.

Quizplus · Accepted Answer

The deadweight loss from a tariff is represented by the areas of the triangles that show the loss in consumer and producer surplus that is not offset by the gain in tariff revenue. In this case, those areas are D and F.

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