Figure 81 Depicts the Supply and Demand Schedules of Calculators for for Greece

question 88

Multiple Choice

Figure 8.1 depicts the supply and demand schedules of calculators for Greece, a "small" country that is unable to affect the world price. Greece's supply and demand schedules of calculators are respectively depicted by SG and DG. Assume that Greece imports calculators from either Germany or France. Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit, while France can supply calculators at $30 per unit.

Figure 8.1. Effects of a Customs Union

-Consider Figure 8.1.Assume Greece levies a per-unit tariff of $20 on imports from both Germany and France. The deadweight welfare loss to Greece resulting from the $20 tariff equals

• A) $20.
• B) $40.
• C) $60.
• D) $80.

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Definitions:

Economists

Professionals who study, develop, and apply theories and concepts from economics and write about economic policy.

Utility

A measure of satisfaction or happiness that a consumer receives from consuming goods and services.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience or activity.

Satisfaction

The fulfillment of one's wishes, expectations, or needs, or the pleasure derived from this.