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I cannot understand where my professor got his answer from. Could you help? The figure shows the market for shirts in the United States, where
I cannot understand where my professor got his answer from. Could you help?
The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt.
In the figure above, U.S. consumers' ________ from the tariff is ________. loss; $176 million (he says this one)
gain; $64 million
loss; $80 million
gain; $128 million
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