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

question 54

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 consumer surplus _____ by the area _____.

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

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Definitions:

Cotton Shirts

Garments made from cotton fabric, known for their comfort, breathability, and versatility in fashion.

Demand for Cotton Shirts

The desire and purchase ability of consumers for cotton shirts at various prices over a period of time.

Price of Beef

The market value assigned to beef, influenced by factors like supply, demand, production costs, and market conditions.

Wages of Taco Shop Workers

The compensation paid to employees working in a taco shop, including hourly or salaried earnings.