The Figure Below Shows the Demand (D) and Supply (S)

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.
Figure 20.1
In the figure,
P₁: Price of the good in the international market.
P₂: Price of the good in the domestic market after the imposition of tariff by the government.
P₃: No-trade price of the good in the domestic market.
-Refer to Figure 20.1. If the government imposes a tariff such that the price of the good in the domestic market is P₂ while the international price is P₁, the dollar value of the tariff is equal to:

A) P₃ - P₁.
B) P₂ - P₃.
C) P₂ - P₁.
D) P₁ - P₂.
E) P₁ - P₃.

Correct Answer:

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