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The figure provided shows the market for calculators. A graph plots demand and supply curves with quantity of calculators along the horizontal axis and price
The figure provided shows the market for calculators. A graph plots demand and supply curves with quantity of calculators along the horizontal axis and price of calculators along the vertical axis. The supply curve has a steep positive slope, and the demand curve has a negative slope. The curves intersect at 300 calculators, 30 dollars. A horizontal line, labeled world price with tariff, starts at 20 dollars on price of calculators and intersects the supply curve at 200 calculators and the demand curve at 500 calculators. A horizontal line, labeled world price, starts at 5 dollars on price of calculators and intersects the supply curve at 50 calculators and the demand curve at 800 calculators. Consumer surplus at the world price, $5, is: $900. $125. $4,000. $16,000
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