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.The tariff results in a net loss to society equal to area(s)

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.The tariff results in a net loss to society equal to area(s) A) DBE + FCG. B) EBCF. C) DBE + EBCF. D) FCG + EBCF. E) none of the above

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.The tariff results in a net loss to society equal to area(s) A) DBE + FCG. B) EBCF. C) DBE + EBCF. D) FCG + EBCF. E) none of the above

-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.The tariff results in a net loss to society equal to area(s)

Quizplus · Accepted Answer

The tariff results in a net loss to society equal to the areas of deadweight loss, which are represented by the triangles DBE and FCG. These areas represent the efficiency losses due to the reduction in consumption and production that result from the tariff.