The Figure Given Below Shows the Market for Shoes in the U.S

question 4

Multiple Choice

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. Following the imposition of tariff, the domestic producer surplus _____ by the area _____.

• A)increases; a
• B)decreases; a
• C)increases; (a + b)
• D)decreases; (a + b)

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Definitions:

Depression

A common and serious medical illness that negatively affects how one feels, thinks, and acts, characterized by feelings of sadness and/or a loss of interest in activities once enjoyed.

Schizophrenia

A mental disorder characterized by abnormal behavior, strange speech, and a decreased ability to understand reality.

Psychiatric Hospital

A psychiatric hospital is a specialized medical facility dedicated to the treatment, care, and support of individuals with mental health disorders.

Board-And-Care Homes

Residential homes that provide lodging, meals, and personal care services for individuals who may not be able to live independently.