If a Tariff Decreases Domestic Consumption of a Good from 230

question 100

Multiple Choice

If a tariff decreases domestic consumption of a good from 230 million units to 150 million units and raises the domestic price by $1.50, given a linear domestic demand curve and a perfectly elastic world supply curve, what is the value of the unexploited gains from trade caused by decreased domestic consumption?

• A) $45 million
• B) $60 million
• C) $80 million
• D) $120 million

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Definitions:

Servant Leadership

A leadership philosophy that emphasizes serving the needs of others, fostering a supportive and collaborative environment.

Paradox

A statement or proposition that, despite sound reasoning from acceptable premises, leads to a conclusion that seems logically unacceptable or self-contradictory.

Serve and Influence

The concept of using one’s position or skills to benefit others and create positive change in their environment or society.

Descriptive

Pertaining to the act of describing or providing an account of something without expressing a judgment or assigning value.