Refer to the Accompanying Graph, Where S_d and D_d Are

question 165

Multiple Choice

Refer to the accompanying graph, where S_d and D_d are the domestic supply and demand curves for a product. The world price of the product is $6. If the market is open to international trade but there is a tariff of $2 per unit imposed, the total government revenue generated by the tariff would be

• A)$40.
• B)$60.
• C)$80.
• D)$100.

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