Suppose the World Price of Widgets Is $5 Each

question 252

Multiple Choice

Suppose the world price of widgets is $5 each.If a widget-importing country imposed a $2 per widget tariff,what price would that country's consumers pay for widgets?

• A) $10
• B) $7
• C) $5
• D) $3
• E) A price that is greater than $5 and less than $7

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, important in financial analysis and investment decisions.

Lease Payments

Lease payments are regular payments made by a lessee to a lessor for the use of an asset, such as property or equipment, over a specified lease term.

Annual Payment

A payment made once a year, often referring to the total amount paid over a twelve-month period for a particular expense.

Desired Sum

An intended total amount or goal that one aims to achieve through calculation or accumulation.