In the figure to the right, the importing country imposes a tariff that raises the domestic price from $16 to $24 but lowers the foreign export price from $16 to $8. The net welfare gain from this tariff for the importing country is O A. $36. O B. $68. O C. $8. O D. $32.

In the figure to the right, the importing country imposes a tariff that raises the domestic price from $16 to $24 but lowers the foreign export price from $16 to $8. The net welfare gain from this tariff for the importing country is O A. $36. O B. $68. O C. $8. O D. $32.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the figure to the right, the importing country imposes a tariff that raises
the domestic price from $16 to $24 but lowers the foreign export price from
$16 to $8.
The net welfare gain from this tariff for the importing country is
A. $36.
OB. $68.
O C. $8.
D. $32.
48-
44-
40-
36-
32-
28-
24-
20-
16-
12-
8-
4-
0-
0
Price, P
1
2
MA
S
D
9
Quantity, Q
10 11 12

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