Given the Following Information Pertaining to Large Country a with Respect

question 34

Multiple Choice

Given the following information pertaining to large country A with respect to good X Under free trade and with a tariff in place:
$\begin{array} { l r } \text { domestic price of X under free trade } & \$ 100 \\\text { world price of X under free trade } & \$ 100 \\\text { domestic price of X with tariff in place } & \$ 103 \\\text { world price of X with tariff in place } & \$ 98 \\\text { domestic production of X under free trade } & 40 \text { units } \\\text { domestic production of X with tariff in place } & 50 \text { units } \\\text { consumption of X under free trade } & 100 \text { units } \\\text { consumption of X with tariff in place } & 80 \text { units }\end{array}$
What is the loss of consumer surplus in country A that occurs because of the imposition of the tariff?

• A) $45
• B) $150
• C) $270
• D). $300

---

Definitions:

Strategic Planning Analysis

The process of conducting research and analysis of an organization's strategic goals to develop plans for future growth and performance improvements.

Green Strategy

An approach to business that focuses on reducing impact on the environment and promoting sustainability.

Electric Vehicle

An automobile that is propelled by one or more electric motors, using energy stored in rechargeable batteries.

Market Competitors

Other companies or entities that offer similar products or services, competing for the same customer base or market share.