You Are Given the Following Information Pertaining to Large Country

question 6

Multiple Choice

You are given the following information pertaining to large country B with respect to good W (which is produced at home and also imported) , both under free trade and with a $10.00 import tariff in place:
$\begin{array}{lr}\text { domestic price of W under free trade }&\$40\\\text {world price of W (i.e., price of W from rest-of-the}\\\text {world) under free trade}&\$40\\\text { domestic price of } \mathrm{W} \text { after imposition of tariff }&\$44\\\text {world price of W (i.e., price of W from rest-of-the}\\\text {world after imposition of tariff}&\$34\\\text { domestic production of W under free trade } & 80 \text { units } \\\text { domestic production of W after imposition of tariff } & 94 \text { units } \\\text { domestic consumption of W under free trade } & 120 \text { units } \\\text { domestic consumption of W after imposition of tariff } & 112 \text { units }\end{array}$

Given this information, and assuming that demand and supply curves are straight lines, what is the loss of consumer surplus in country B that occurs because of the imposition of the tariff?

• A) $44
• B) $72
• C) $448
• D) $464

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Definitions:

Revenue Recognition Policies

Guidelines that determine the specific conditions under which revenue is recognized as earned and can be reported in financial statements.

Accounting Choices

Decisions made by management regarding the methods, practices, and principles followed in financial reporting and accounting.

Summary of Significant Accounting Policies

A section in financial statements that describes the key accounting policies and estimations used in preparing the financial statements.

Subsequent Events

Events that occur after the balance sheet date but before the financial statements are issued or available to be issued, affecting the financial information presented.