The Diagram Below Shows Supply and Demand Curves for Bicycles

question 88

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 $200 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:

Travel

The movement of people between distant geographical locations, which can be done by foot, bicycle, automobile, train, boat, bus, airplane, or other means.

Sound Registering

The process of detecting and recognizing sound waves by auditory systems.

DbA

DbA refers to a unit of measurement for sound intensity, adjusted to the human ear's response to different frequencies, indicating the apparent loudness of sounds.

Mass Transit

Public transportation systems designed to move large numbers of people efficiently across cities and other populated areas.