The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 91

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 21.2
- In Figure 21.2,if the world price of wheat is $35 and a $15 tariff is imposed:

• A)domestic consumption will decrease from 400 to 350 bushels of wheat.
• B)the government will collect $200 in revenue from the tariff.
• C)domestic consumption will increase from 150 to 200 bushels of wheat.
• D)imports will be eliminated.
• E)domestic consumption will increase from 150 to 300 bushels of wheat.

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