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

---

Definitions:

User-Based Definition

A user-based definition refers to the explanation or interpretation of a concept, term, or system based on the perspective or use case of the end-user.

Product-Based Definition

An approach that defines a product by its features, components, and attributes rather than its function or the customer need it satisfies.

Manufacturing-Based Definition

relates to quality concepts focusing on adherence to specifications and efficiency in production processes.