Mc question your help is required (1 Viewer)

[BanterQueen]

http://imgur.com/h0NGqo8


Initially import revenue is 300 quantity times price of 10 so it should be 3000

After the implementation of the tariff imports quantity is reduced to 100 but prices increases to 15 so the revenue is 1500

SO there should be a decline of revenue 1500

But the answers says D someone help please

 

[RecklessRick]

Price to consumers increases to $15, but that's because there's a $5 tax going to the government. So the revenue received by foreign firms is still based on the $10 price.

 

[BanterQueen]

Price to consumers increases to $15, but that's because there's a $5 tax going to the government. So the revenue received by foreign firms is still based on the $10 price.

Lol im dumb thanks