The Figure Below Shows the Demand (D) and Supply (S)

question 13

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P₁: Price of the good in the international market.P₂: Price of the good in the domestic market after the imposition of tariff by the government.P₃: No-trade price of the good in the domestic market.
-Which of the following would result from a tariff?

• A)An increase in government budget deficit
• B)An increase in domestic production
• C)A greater volume of international trade
• D)Increased domestic consumption
• E)Decrease in prices of the imported goods

---

Definitions:

Flexibility

The quality of being adaptable or willing to adjust to new conditions or situations.

Flexible

Capable of adapting to new, different, or changing requirements or situations with ease.

Rigid

Characterized by inflexibility or strictness in structures, systems, or attitudes, potentially hindering adaptability or progress.

Genuine

refers to being truly what something is said to be; authentic and sincere in one's actions, intentions, or character.