Scenario: the Following Figure Shows the Demand Curve, D, and the Supply

question 246

Multiple Choice

Scenario: The following figure shows the demand curve, D, and the supply curve, S, of chairs in Barylia. Barylia is open to free trade. The world price of chairs is $3, and the government of Barylia decides to impose a $1 tariff on the import of chairs.

-Refer to the scenario above.Calculate the revenue earned by the government when it imposes a tariff of $1 on chairs.

• A) $10
• B) $20
• C) $30
• D) $40

---

Definitions:

Efficient Firms

Efficient firms are those that maximize outputs or outcomes while minimizing inputs or resources, effectively utilizing resources without waste.

Corruption

Dishonest or fraudulent conduct by those in power, typically involving bribery or the manipulation of authority for personal gain.

Microfinance

Financial services including loans, savings, insurance, and training provided to individuals or small businesses in low-income areas, primarily to empower them economically.

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, crucial for raising capital.