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