The Following Table Gives the Hypothetical Supply and Demand of Television

question 39

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. What is the value of the total welfare losses that Guatemala will suffer as a result of the 100% tariff on imported TVs?

• A) $270,000
• B) $360,000
• C) $540,000
• D) $720,000

---

Definitions:

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action to resolve the issue.

Open Communicators

Individuals or entities that engage in transparent, honest, and straightforward exchange of information without withholding.

Human Relations

The study and management of how individuals and groups interact within an organization to improve morale and productivity.

Structured Problems

Problems that are well-defined, with clear goals and known solutions.