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Refer to the accompanying diagram, which shows the domestic demand and supply curves for cotton towels in Canada. The prevailing world price of cotton towels
Refer to the accompanying diagram, which shows the domestic demand and supply curves for cotton towels in Canada. The prevailing world price of cotton towels is Pw. Assume that all S cotton towels are identical. If Canada imposes a tariff of $t per cotton towel, Canadian towel producers' revenues will be equal to the amount O A. E + D + G + H. O B. B + J + E + D+G. Price O C. B + J + C+A. Pw+t O D. B + J + C + E +D +G+H. B O E. E + D+ G. PW C A E D G H F Q1 Q2 Q3: Q4 Quantity of cotton towelsRefer to the accompanying diagram, which shows the domestic demand and supply curves for denim jeans in Canada. The prevailing world price is Pwy. Assume that all jeans are identical. S If Canada imposes a tariff of $t per pair of jeans, Canadian jean producers' revenues will increase by the area equal to O A. F + E +D. OB. F + E. Pp Price O C. H+G+1. OD. A + B + F+ J. Pw +1 A B C O E. G+F +E+D. Pw H G F E D K D Q5 Quantity of denim jeans
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