The Domestic Market for Calculators Is Perfectly Competitive and Is

question 34

Multiple Choice

The domestic market for calculators is perfectly competitive and is in equilibrium. Domestic demand is given by Q^d = 100 - P and domestic supply is given by Q^s = 4P. The world price for calculators is $10. Now, a tariff of $10 is imposed on all imports. How much revenue does this policy generate for the government?

• A) 0
• B) 10
• C) 30
• D) 50

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Definitions:

Habituation

A learning process where an organism reduces its responsiveness to a non-threatening stimulus over time through repeated encounters.

Stimuli

External or internal events that elicit a response from an organism.

Salivary Response

An automatic reaction of the salivary glands producing saliva, often triggered by the sight, smell, or thought of food, demonstrating a classic conditioned response.

Big Mac

A hamburger sold by the international fast-food chain McDonald's, characterized by its two-part sesame seed bun and special sauce.