Question 35werSuppose in an economy with a tariff on the import of sugar, if the domestic demand for sugar decreases, then which of the following is true? The figure is forreference. In the figure D₁ represents domestic demand, S₁ represents domestic supply, S2 represents supply with free trade, and S3 represents supply with tariffimposed.(c) Tariff-restricted tradeD₁S₁PRICE (dollars per unit)▬▬▬▬C0qd qt93 92QUANTITY (units per year)The price paid by consumer will stay the same and import of sugar will increase.The price paid by consumers will increase and import of sugar will increase.The price paid by consumer will decrease and import of sugar will decrease.The price paid by consumers will stay the same and import of sugar will decrease.S₂

Suppose in an economy with a tariff on the import of sugar, if the domestic demand for sugar decreases, then which of the following is true? The figure is for reference. In the figure D₁ represents domestic demand, S₁ represents domestic supply, S2 represents supply with free trade, and S3 represents supply with tariff imposed. (c) Tariff-restricted trade D₁ S₁ PRICE (dollars per unit) P₁ 0 વત વા 93 92 QUANTITY (units per year) The price paid by consumer will stay the same and import of sugar will increase. The price paid by consumers will increase and import of sugar will increase. The price paid by consumer will decrease and import of sugar will decrease. The price paid by consumers will stay the same and import of sugar will decrease.

Suppose in an economy with a tariff on the import of sugar, if the domestic demand for sugar decreases, then which of the following is true? The figure is for reference. In the figure D₁ represents domestic demand, S₁ represents domestic supply, S2 represents supply with free trade, and S3 represents supply with tariff imposed. (c) Tariff-restricted trade D₁ S₁ PRICE (dollars per unit) P₁ 0 વત વા 93 92 QUANTITY (units per year) The price paid by consumer will stay the same and import of sugar will increase. The price paid by consumers will increase and import of sugar will increase. The price paid by consumer will decrease and import of sugar will decrease. The price paid by consumers will stay the same and import of sugar will decrease.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 14SCQ: Assume a perfectly competitive market and the exporting country is small. Using a demand and supply...

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