This Graph Demonstrates the Domestic Demand and Supply for a Good,as

question 112

Multiple Choice

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good.
According to the graph shown,if the economy were operating under free trade,then imposed a tariff,the overall impact on surplus would be:

• A)a net loss of IL.
• B)a net gain of IJKL.
• C)a net loss of IJKL.
• D)a net gain of FGHIJKL.

---

Definitions:

Appraisal Costs

Costs associated with evaluating and inspecting products or services to ensure they meet quality standards.

Quality Cost Report

A summary of the total expenses associated with preventing, detecting, and correcting defects in products, including appraisal, prevention, and failure costs.

Prevention Costs

Expenses incurred to prevent defects in products or services, including costs of quality planning, training, and preventive maintenance.

Appraisal Costs

The costs associated with measuring, evaluating, or auditing products to ensure they meet quality standards and performance requirements.