-The Above Figure Shows the U

question 90

Multiple Choice

-The above figure shows the U.S.market for replacement cell phone batteries.Area E is the

• A) producer surplus when there is free trade.
• B) deadweight loss from tariff.
• C) tariff revenue.
• D) increase in producer surplus due to the tariff.
• E) gain in total surplus due to the tariff.

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Definitions:

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Economic Profit

The discrepancy between a company's complete income and its aggregate expenditures, covering both out-of-pocket and assumed costs.

Purely Competitive

A market structure characterized by a large number of sellers offering identical products, with easy market entry and exit and no single seller controlling market prices.

Differentiated Product

A merchandise unique from its rivals due to its superior quality, distinctive features, or branding.