The Diagram Below Shows Supply and Demand Curves for Bicycles

question 99

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical. FIGURE 33-4 Refer to Figure 33-4.Suppose the world price of bicycles is $500 and Canada has in place a 50% tariff on this good.The deadweight loss to the Canadian economy resulting from this tariff is ________ per year.

• A)$0
• B)$0.5 million
• C)$1.0 million
• D)$1.5 million
• E)$2.0 million

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Definitions:

Personal Loss

The experience of losing something significant to an individual, such as a loved one, job, or sense of security, leading to emotional distress.

Occasional Regression

Temporary return to earlier patterns of behavior or stages of development under stress or discomfort.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

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A measure of a person's intellectual abilities compared to the average population, expressed as a score.