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

question 87

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 total surplus after the government imposes a tariff of $1 per unit.

• A) $160
• B) $240
• C) $300
• D) $315

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