Use the following to answer questions :
Figure: The Market for Melons in Russia II
-(Figure: The Markets for Melons in Russia II)Use Figure: The Market for Melons in Russia II.If the world price is $10 and a tariff of $5 is imposed on this market,the burden of the tariff will be borne by:

Question

Use the following to answer questions :
Figure: The Market for Melons in Russia II 
-(Figure: The Markets for Melons in Russia II)Use Figure: The Market for Melons in Russia II.If the world price is $10 and a tariff of $5 is imposed on this market,the burden of the tariff will be borne by:

Quizplus · Accepted Answer

In the given scenario, the world price of melons is $10. When a tariff of $5 is imposed, the new market price for melons in Russia will be $15 ($10 + $5). As a result, the domestic price of melons will increase, and the Russian consumers will have to pay higher prices. The increased price will decrease the quantity demanded by the consumers, and the domestic producers will increase the quantity supplied. Therefore, the burden of the tariff will be borne by the domestic consumers, and the domestic producers will benefit from the increased domestic production and sales. Hence, the correct answer is B) consumers.

Use the Following to Answer Questions