-The Above Figure Shows the Australian Market for Replacement Mobile

question 2

Multiple Choice

-The above figure shows the Australian market for replacement mobile phone batteries. Suppose the Australian government imposes the tariff illustrated in the figure. The tariff is equal to ________, and the price Australian consumers pay ______ compared to the price paid when there was free trade.

• A) $2; increases
• B) $12; increases
• C) $14; increases
• D) $14; decreases
• E) $2; decreases

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the consumption or wear and tear of the asset.

Equity Infusion

Capital that is provided to a company in exchange for partial ownership, often used to boost the company's growth or stabilize its financial health.

Retention of Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends, often used for reinvestment.

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or stock appreciation.