Figure 9-15 -Refer to Figure 9-15.With the tariff,the price paid and quantity demanded by domestic buyers are A)P₁ and Q₁. B)P₁ and Q₄. C)P₂ and Q₂. D)P₂ and Q₃.

Question

Quizplus · Accepted Answer

With the tariff, the domestic price increases from P1 to P2, and the domestic quantity demanded decreases from Q1 to Q2. Therefore, the new price and quantity demanded by domestic buyers are P₂ and Q₃, respectively.

Figure 9-15 -Refer to Figure 9-15.With the Tariff,the Price Paid and Quantity