Author Question: The U.S. government currently imposes a 0.54 per gallon tariff on all ethanol imported into the ... (Read 70 times)

arivle123 · **on:** Jul 1, 2018

The U.S. government currently imposes a 0.54 per gallon tariff on all ethanol imported into the country. If this tariff were removed, then:

A) the domestic ethanol price falls.
B) the domestic quantity of ethanol supplied declines.
C) domestic consumer surplus increases.
D) domestic producer surplus decreases.
E) all of the above

Question 2

The textbook for your class was not produced in a perfectly competitive industry because

A) there are so few firms in the industry that market shares are not small, and firms' decisions have an impact on market price.
B) upper-division microeconomics texts are not all alike.
C) it is not costless to enter or exit the textbook industry.
D) of all of the above reasons.