The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 4

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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Definitions:

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A long-distance running event with an official distance of 42.195 kilometers, typically a race, requiring endurance and stamina.

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Emotional aggression or anger directed towards oneself, which can result from frustration or perceived past failures.