The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 27

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 34- 1
-Refer to Figure 34- 1. Suppose that 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 new price, P₁, multiplied by the total quantity of refrigerators purchased in Canada, Q₄.
• B)the original price P₀, multiplied by the original quantity of refrigerators imported into Canada, Q₁Q₅.
• C)(P₁ - P₀)multiplied by the tariff- induced quantity of refrigerators imported into Canada, Q₁Q₅.
• D)(P₁ - P₀)multiplied by the tariff- induced quantity of refrigerators imported into Canada, Q₂Q₄.
• E)the new price, P₁, multiplied by the total quantity of refrigerators purchased in Canada, Q₂.

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