-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to ________ and the price U.S.consumers pay ________ compared to the price paid when there was free trade.
A) $2; decreases
B) $14; decreases
C) $2; increases
D) $12; increases
E) $14; increases

Question

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to ________ and the price U.S.consumers pay ________ compared to the price paid when there was free trade.
A) $2; decreases 
B) $14; decreases 
C) $2; increases 
D) $12; increases 
E) $14; increases

Quizplus · Accepted Answer

The tariff increases the price from the world price to a higher domestic price, indicating that consumers pay more. The difference between the world price and the new domestic price after the tariff is imposed represents the tariff amount, which is $2.

-The Above Figure Shows the U