The Following Table Gives the Hypothetical Supply and Demand of Television

question 98

Multiple Choice

The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set. Who will benefit from Guatemala's 100% tariff on imported TVs?

• A) Guatemala's consumers
• B) Guatemala's TV producers
• C) Guatemala's TV importers
• D) foreign TV manufacturers

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