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The figure below illustrates a tariff. On the graph. Q represents quantity and P represents price. Domestic supply 12 11 10 9 8 7 6

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The figure below illustrates a tariff. On the graph. Q represents quantity and P represents price. Domestic supply 12 11 10 9 8 7 6 5 A B Di E F World price + tariff World price 3 2 1 G Domestic demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Q Refer to the above figure. The tariff decreases producer surplus by the area C and decreases consumer surplus by the area C+D+ E + F. decreases producer surplus by the area C + D and decreases consumer surplus by the area D+E+F. increases producer surplus by the area C and decreases consumer surplus by the area C+D+E + F. increases producer surplus by the area B + C and decrease consumer surplus by the area D+E+ F

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