Homework Answers
22. Area "F" represents Government revenue.
When a government imposes tariff. It increases the price of the good in the domestic country. This is a revenue for the government.
23. Area " E+G " represents Dead weight loss.
When the price of a good increases due to tarrif. It reduces the consumer surplus. This gives rise to a dead weight loss i.e loss to the economy.
13. Not possible
Tariff will always have a dead weight loss associated with it. So there will be some party that will lose out on tariff.
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