The Following Graph Depicts the Market for a Particular Good

question 99

Multiple Choice

The following graph depicts the market for a particular good in Dorne.Dorne was importing the good under free trade and then decided to impose a tariff.Use the graph to answer the following questions:

-When the tariff is imposed,imports will fall from

• A) 130 to 110.
• B) 80 to 50.
• C) 60 to 50.
• D) 20 to 10.
• E) 130 to 60.

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Definitions:

Perpetual Inventory System

An accounting method that continuously updates inventory records for each purchase and sale of inventory.

Cost of Merchandise Sold

The total cost incurred to purchase or manufacture the goods sold during a specific period.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and the cost of transportation once the goods leave the seller’s premises.

Report Form

The form of balance sheet with the Liabilities and Owner’s Equity sections presented below the Assets section.