Figure 7-2 Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff.
-Refer to Figure 7-2.As a result of the tariff,domestic producers increase their quantity supplied by
A)6 million pounds of coffee.
B)18 million pounds of coffee.
C)26 million pounds or coffee.
D)38 million pounds of coffee.

Question

Figure 7-2  Suppose the U.S.government imposes a $0.75 per pound tariff on coffee imports.Figure 7-2 shows the impact of this tariff.
-Refer to Figure 7-2.As a result of the tariff,domestic producers increase their quantity supplied by
A)6 million pounds of coffee. 
B)18 million pounds of coffee. 
C)26 million pounds or coffee. 
D)38 million pounds of coffee.

Quizplus · Accepted Answer

The correct answer is A) 6 million pounds of coffee. This is determined by the difference in the quantity supplied by domestic producers before and after the tariff is imposed, as shown in Figure 7-2.