The Diagram Below Shows Supply and Demand Curves for Bicycles

question 77

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical.
FIGURE 34- 4
-Refer to Figure 34- 4. Suppose the world price of bicycles is $500 and Canada has in place a 50- percent tariff on this good. The deadweight loss to the Canadian economy resulting from this tariff is per year.

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

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Definitions:

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A genus of plants within the sunflower tribe, known for their bright and colorful flowers, often used in gardens and landscaping.

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A common garden plant known for its bright orange, yellow, or mixed-color flowers, often used for ornamental purposes or as a natural pest deterrent.

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Individuals who enter or reside in a country without the necessary authorization or documents required by immigration laws.