Exhibit 17-5
-If the country illustrated in Exhibit 17-5 is initially trading without restrictions at a world price of $1.00,the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Question

Exhibit 17-5 
-If the country illustrated in Exhibit 17-5 is initially trading without restrictions at a world price of $1.00,the loss of consumer surplus as a result of a tariff of $0.50 per unit is represented by area

Quizplus · Accepted Answer

The loss of consumer surplus as a result of a tariff is represented by the area c + i + e + f. Therefore, the correct choice is C.

Exhibit 17-5 -If the Country Illustrated in Exhibit 17-5 Is Initially Trading