The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set. What is the value of the total welfare losses that Guatemala will suffer as a result of the 100% tariff on imported TVs?
A) $270,000
B) $360,000
C) $540,000
D) $720,000

Question

The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set.  What is the value of the total welfare losses that Guatemala will suffer as a result of the 100% tariff on imported TVs?
A) $270,000 
B) $360,000 
C) $540,000 
D) $720,000

Quizplus · Accepted Answer

The Answer of The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set.  What is the value of the total welfare losses that Guatemala will suffer as a result of the 100% tariff on imported TVs?
A) $270,000 
B) $360,000 
C) $540,000 
D) $720,000

The Following Table Gives the Hypothetical Supply and Demand of Television