Use the following to answer questions:
Figure: Trade 2
-(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, what are the total revenues generated by the tariff?
A) $25,000
B) $20,000
C) $10,000
D) $5,000

Question

Use the following to answer questions:
Figure: Trade 2 
-(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, what are the total revenues generated by the tariff?
A) $25,000 
B) $20,000 
C) $10,000 
D) $5,000

Quizplus · Accepted Answer

The total revenues generated by the tariff are calculated by multiplying the tariff per unit by the quantity of imports. The figure likely shows the quantity of imports after the tariff is imposed, and the tariff revenue is the area of the rectangle formed by the tariff rate and the quantity of imports.

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