Figure 9-24
The following diagram shows the domestic demand and supply in a market.Assume that the world price in this market is $20 per unit.
-Refer to Figure 9-24.Suppose the government imposes a tariff of $10 per unit.The amount of revenue collected by the government from the tariff is
A)$50.
B)$100.
C)$150.
D)$200.

Question

Figure 9-24
The following diagram shows the domestic demand and supply in a market.Assume that the world price in this market is $20 per unit. 
-Refer to Figure 9-24.Suppose the government imposes a tariff of $10 per unit.The amount of revenue collected by the government from the tariff is
A)$50. 
B)$100. 
C)$150. 
D)$200.

Quizplus · Accepted Answer

The government revenue from a tariff is calculated by multiplying the tariff per unit by the number of units imported. If the tariff is $10 per unit and the total revenue is $100, it implies that 10 units were imported (since $100 / $10 per unit = 10 units).

Figure 9-24 the Following Diagram Shows the Domestic Demand and Supply in Supply