7/20/2017 11:13 AM
Exhibit 34-11

-Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area

Question

7/20/2017 11:13 AM
Exhibit 34-11
7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.P<sub>W</sub> is the price that exists in the market before a tariff is imposed and P<sub>W + T</sub> is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area A) DBCG. B) EBCF. C) CFG. D) BCGE. E) DBCF.

7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.P<sub>W</sub> is the price that exists in the market before a tariff is imposed and P<sub>W + T</sub> is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area A) DBCG. B) EBCF. C) CFG. D) BCGE. E) DBCF.

-Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area

Quizplus · Accepted Answer

Tariff revenues are represented by the area between the price before the tariff (P_W) and the price after the tariff (P_{W + T}) over the quantity of imports after the tariff is imposed. This area is EBCF, capturing the extra cost per unit imported (the height of the rectangle) times the number of units imported (the width of the rectangle).