Use the Following to Answer Questions

question 6

Multiple Choice

Use the following to answer questions:
Figure: Shirts
-(Figure: Shirts) Refer to the figure. If a tariff raised the world price to $4 a shirt, how much consumer surplus would be lost?

• A) $5,000,000
• B) $10,000,000
• C) $85,000,000
• D) $30,000,000

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Definitions:

Seller

An individual or entity that transfers goods, services, or property to another party in exchange for money or other compensation.

Common Law

The body of law derived from judicial decisions of courts and similar tribunals, rather than from statutes or official codes.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Restraint of Trade

Practices or agreements that restrict competition or control prices within a business context, often considered illegal or subject to regulation.