Suppose That the Equations S = 2P and D =

question 161

Multiple Choice

Suppose that the equations S = 2P and D = 6 - P represent a small country's home supply and home demand curves, and the free-trade world price is $1. If the government imposed a 50% tariff on imports, how much revenue would it collect as a result of the tariff? (Note: It is possible to consume partial units of this product, such as 2.5 units.)

• A) $1.50
• B) $2.75
• C) $0.50
• D) $0.75

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Definitions:

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.

Personal Use

Usage of an item or service solely for an individual’s needs and not for business or professional scenarios, emphasizing the non-commercial aspect.

Capital Contributions

Funds or other assets provided to a company by its owners or shareholders to support operations or expand the business.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.