Refer to the figure below to answer the following questions.

The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The Canadian government's revenue from the tariff is
A)$64 million.
B)$32 million.
C)$128 million.
D)$48 million.
E)$480 million.

Question

Refer to the figure below to answer the following questions.
  
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The Canadian government's revenue from the tariff is
A)$64 million. 
B)$32 million. 
C)$128 million. 
D)$48 million. 
E)$480 million.

Quizplus · Accepted Answer

The tariff is $2 per unit, and 32 million units are imported. So the revenue is $2 * 32 million = $64 million.

Refer to the Figure Below to Answer the Following Questions