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:

Wundt

A psychologist often referred to as the father of experimental psychology, known for establishing the first psychology laboratory.

Plato

An ancient Greek philosopher, a student of Socrates, whose work laid the foundations for much of Western philosophy and science.

Freud

Sigmund Freud, an Austrian neurologist, established psychoanalysis as a therapeutic approach to address psychopathology through conversational interaction between a psychoanalyst and a patient.

Functionalism

A theoretical framework in psychology that emphasizes the roles and purposes of mind and behavior in adapting to the environment.