The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 47

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada. FIGURE 33-1 Refer to Figure 33-1.Suppose P₀ is the world price.If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P₀ to P₁,the Canadian government will collect tariff revenues equal to

• A)the original price P₀,multiplied by the original quantity of refrigerators imported into Canada,Q₁Q₅.
• B)(P₁ - P₀)multiplied by the tariff-induced quantity of refrigerators imported into Canada,Q₁Q₅.
• C)(P₁ - P₀)multiplied by the tariff-induced quantity of refrigerators imported into Canada,Q₂Q₄.
• D)the new price,P₁,multiplied by the total quantity of refrigerators purchased in Canada,Q₄.
• E)the new price,P₁,multiplied by the total quantity of refrigerators purchased in Canada,Q₂.

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Definitions:

Landslide

The sudden and rapid movement of a large amount of earth material, such as rock and soil, downslope due to gravity.

Unconformity

A surface of erosion or non-deposition that separates younger strata from older rocks, indicating a gap in the geologic record.

Conglomerate

A conglomerate is a coarse-grained sedimentary rock composed of rounded fragments larger than 2 mm in diameter, embedded in a matrix of finer particles and cement.

Shale Layer

A shale layer is a sedimentary rock formation characterized by fine-grained clay particles, often found in various geological strata and known for being a source of oil and natural gas through hydraulic fracturing.