Asked by
Alyssa Verdugo
on Oct 25, 2024Verified
(Figure: A Tariff on Oranges in South Africa) Use Figure: A Tariff on Oranges in South Africa.When the government imposes a tariff on imported oranges,the price of oranges in South Africa rises from PW to PT and domestic producer surplus _____ to _____.
A) falls;G + I
B) falls;G + I + J + K
C) rises;G + + J + K
D) rises;G + H
Domestic Producer Surplus
The difference between what domestic producers are willing to accept for a good and the actual price they receive, measuring their economic benefit.
Tariff
A tax imposed by a government on goods imported from another country, intended to increase the price of foreign goods and protect domestic industries.
Oranges
A type of citrus fruit known for its juicy segments and rich source of Vitamin C.
- Review the effects of trade policies on the extra revenue for producers and consumers.
Verified Answer
KB
Learning Objectives
- Review the effects of trade policies on the extra revenue for producers and consumers.