Suppose the Domestic Market Demand Function in a Certain Market

question 27

Multiple Choice

Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Q^d = 20 - 2.5P,and the domestic market supply function is Q^s = 2.5P - 7.5.Suppose further that the world price for the good in question is $3.40 per unit.If the government places a $1.20 tariff on imported units of this good,how much revenue does the tariff generate?

• A) $3,200
• B) $3,600
• C) $5,400
• D) $3,000

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Total Return

The overall financial gain or loss on an investment, including both capital appreciation/depreciation and income like dividends and interest over a given time period.

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