The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. ↑ Price 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 Domestic Supply Domestic Demand 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 Quantity Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is O $15,000. O $6,000. O $9,000. O $12,000.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 2PA
Question
The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is
$40 per unit.
↑ Price
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
Domestic
Supply
Domestic
Demand
200
400
600
800
1000
1200 1400 1600
1800 2000
2200
2400 Quantity
Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is
O $15,000.
O $6,000.
O $9,000.
O $12,000.
Transcribed Image Text:The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. ↑ Price 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 Domestic Supply Domestic Demand 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 Quantity Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is O $15,000. O $6,000. O $9,000. O $12,000.
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