The Following Question(s)refer to the Figure Below,which Shows the Effect

question 81

Multiple Choice

The following question(s) refer to the figure below,which shows the effect of a country imposing a tariff on an imported product.
Figure 17-14

-Refer to Figure 17-14.Suppose that a tariff of t is imposed upon this good,raising the price to PW + t.As a result,

• A)imports will fall to 30.
• B)domestic production will increase to 50.
• C)domestic consumption will fall to 80.
• D)all of the above are true.

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Definitions:

Perpetual Inventory System

An approach in accounting where the transaction of buying or selling inventory is instantly documented through computerized point-of-sale systems and software for enterprise asset management.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer under specified circumstances, like returns or discounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Owner's Drawings

The amount of money taken from the business by the owner for personal use, not considered a business expense.