Figure 9-16

question 51

Multiple Choice

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price.
-Refer to Figure 9-16.The area C + D + E + F represents

• A)the decrease in consumer surplus caused by the tariff.
• B)the decrease in total surplus caused by the tariff.
• C)the deadweight loss of the tariff minus government revenue raised by the tariff.
• D)the deadweight loss of the tariff plus government revenue raised by the tariff.

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Definitions:

Negotiations

The process of discussing and arriving at a mutual agreement between parties with differing interests.

Arbitration

A form of dispute resolution where an impartial third party makes a binding decision to resolve a conflict.

Arbitrator

A neutral third party who is appointed to resolve a dispute between two or more parties by making a decision after considering all the relevant facts and arguments.

Negotiations

The process in which two or more parties with differing needs and goals discuss an issue to find a mutually acceptable agreement.