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

question 169

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.What is the deadweight loss of the tariff imposed by the government?

• A) $10
• B) $20
• C) $30
• D) $40

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Definitions:

Risky Behavior

Engaging in actions that can potentially harm oneself or others, often without acknowledging the possible negative consequences.

Encouraging Hope

Encouraging hope refers to the psychological support strategy aimed at fostering a sense of expectancy and optimism in individuals or groups facing challenges.

Decision Making

The cognitive process of selecting a course of action from multiple alternatives.

Solution Implementation

The process of executing strategies or actions to solve specific problems or achieve defined outcomes.