am. 155. Suppose an import tariff raises the price of a good from its free trade level of $250 per unit to $270 per unit. Because of this priceincrease, the quantity of domestic consumer demand for the good falls from 100,000 units to 75,000 units. This indicates thatconsumer surplusA Increases by $1.75 millionB Decreases by $5.5 millionC Decreases by $1.75 millionD Decreases by $2 million

Consumer surplus refers back to the financial gain or application that clients derive from buying an…

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Business

Economics

consumer surplus

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.8P

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