Use the Following to Answer Questions

question 72

Multiple Choice

Use the following to answer questions:
Figure: Shirts
-(Figure: Shirts) Refer to the figure. If a tariff raised the world price to $4 a shirt, how much deadweight loss would it create?

• A) $5,000,000
• B) $10,000,000
• C) $120,000,000
• D) $200,000,000

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Definitions:

Supplier Diversification

The strategy of sourcing materials or products from a variety of suppliers to reduce risk and increase reliability in the supply chain.

Lowest Bid

In procurement and auctions, the smallest price offer received to perform a job or provide goods.

Suppliers

Entities that provide goods or services to another organization, typically within a supply chain or business context.

Bullwhip Measure

A quantification of the bullwhip effect, which illustrates how variations in demand can be amplified as one moves up the supply chain.