Refer to the graph above, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If this market were closed to international trade, the total revenue that would go to domestic producers would be:
A) $600, but only $240 if the domestic market were open to international trade
B) $600, but only $120 if the domestic market were open to international trade
C) $500, but only $240 if the domestic market were open to international trade
D) $240, but only $120 if the domestic market were open to international trade
Correct Answer:
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Q94: Assume that a tariff is imposed on
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