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Question: The following graph shows the situation after

The following graph shows the situation after the U.S. government removes a tariff on imports of canned tuna.
The following graph shows the situation after the U.S. government removes a tariff on imports of canned tuna.


a. Which areas show the gain in consumer surplus?
b. Which area shows the loss in producer surplus?
c. Which area shows the loss in government tariff revenue?
d. Which areas show the gain in economic surplus?

a. Which areas show the gain in consumer surplus? b. Which area shows the loss in producer surplus? c. Which area shows the loss in government tariff revenue? d. Which areas show the gain in economic surplus?





Transcribed Image Text:

Price U.S. supply U.S. price = World price + Tariff Po A B. D World price P, U.S. demand Quantity of tuna


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