14. Consider the following diagram. The discussion in the text implies that if this country imposes a

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14. Consider the following diagram. The discussion in the text implies that if this country imposes a tariff, social surplus will fall by the sum of area A and area B. Intuitively, why is A part of the deadweight loss from this tariff? Intuitively, why is B part of the deadweight loss from this tariff?

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Macroeconomics

ISBN: 9780134492056

2nd Edition

Authors: Daron Acemoglu, David Laibson, John List

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