Figure 9.5.1 -Refer to Figure 9.5.1 Above. If Free Trade in Sugar

question 95

Multiple Choice

Figure 9.5.1
-Refer to Figure 9.5.1 above. If free trade in sugar is replaced by a $50 tariff on sugar, the effect on domestic producer surplus will be to:

• A) lower it by $50.
• B) lower it by $12,500.
• C) leave it unchanged.
• D) raise it by $50.
• E) raise it by $12,500.

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