A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): Domestic production (free trade): Domestic production (after tariff): Domestic consumption (free trade): Domestic consumption (after tariff): $20 per bottle 500,000 bottles 580,000 bottles 750,000 bottles 640,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to by_ Select one: O rise; $2.7 million O fall; $500,000 O rise; $2.5 million O rise; $2.75 million

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): Domestic production (free trade): Domestic production (after tariff): Domestic consumption (free trade): Domestic consumption (after tariff): $20 per bottle 500,000 bottles 580,000 bottles 750,000 bottles 640,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to by_ Select one: O rise; $2.7 million O fall; $500,000 O rise; $2.5 million O rise; $2.75 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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