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

question 56

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 in Barylia under free trade.

• A) $150
• B) $250
• C) $325
• D) $375

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Definitions:

Economic Growth

An increase in the production of goods and services over a certain period within a country, leading to an improvement in the country's economy.

Agricultural Revolution

A period of technological improvement and increased crop productivity that began in the 18th century.

Spread Of Disease

The expansion of illness or pathogens from one individual to another or through populations, potentially causing an outbreak or epidemic.

Demand For Minerals

The need or desire for minerals, driven by their use in various industries including manufacturing, technology, and construction.