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Figure: Shirts
-(Figure: Shirts) Refer to the figure. If a tariff raised the world price to $4 a shirt, how much consumer surplus would be lost?

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Use the following to answer questions:
Figure: Shirts 
-(Figure: Shirts) Refer to the figure. If a tariff raised the world price to $4 a shirt, how much consumer surplus would be lost?

Quizplus · Accepted Answer

The loss in consumer surplus is calculated by the area of the triangle formed between the original price, the new price, and the demand curve. The correct calculation based on the given price change results in a loss of $85,000,000 in consumer surplus.

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