Figure 9-15
-Refer to Figure 9-15.For the saddle market,area E represents
A)government's revenue from the tariff.
B)producer surplus after the tariff becomes effective.
C)the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff.
D)the decrease in total surplus,relative to the free-trade situation,as a result of the tariff.

Question

Figure 9-15 
-Refer to Figure 9-15.For the saddle market,area E represents
A)government's revenue from the tariff. 
B)producer surplus after the tariff becomes effective. 
C)the decrease in consumer surplus,relative to the free-trade situation,as a result of the tariff. 
D)the decrease in total surplus,relative to the free-trade situation,as a result of the tariff.

Quizplus · Accepted Answer

Area E represents the government's revenue from the tariff, as it is the area between the domestic supply and demand curves over the quantity of imports after the tariff is imposed.

Figure 9-15 -Refer to Figure 9-15.For the Saddle Market,area E Represents