If a Tariff Decreases Domestic Consumption of a Good from 230

question 100

Multiple Choice

If a tariff decreases domestic consumption of a good from 230 million units to 150 million units and raises the domestic price by $1.50, given a linear domestic demand curve and a perfectly elastic world supply curve, what is the value of the unexploited gains from trade caused by decreased domestic consumption?

• A) $45 million
• B) $60 million
• C) $80 million
• D) $120 million

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Definitions:

Operational Plans

Define specific activities to implement strategic plans.

Strategic Plans

Define long-term needs and set action directions for the organization. Tactical plans are developed and used to implement strategic plans.

Financial Plans

Documents that outline an individual's or organization's present financial situation and long-term monetary goals, along with strategies to achieve those goals.

SMART Model

Is an approach to determining effective organisational objectives that requires that they be Specific, Measurable, Actionable, Reasonable, and Timetabled.