-In the Above Figure,if the Quantity Is Restricted to 500,000

question 66

Multiple Choice

-In the above figure,if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then area C + area E is equal to

• A) deadweight loss.
• B) consumer surplus.
• C) total surplus.
• D) producer surplus.
• E) total revenue.

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Definitions:

Specific Tariff

A fixed fee imposed by a government on imported or exported goods, based on physical units like weight or quantity.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

World Price

The price of a good that prevails in the global market for internationally traded goods.

Trade Restrictions

Measures imposed by governments to limit international trade for various reasons, including protecting domestic industries.