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 21.1
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 21.1. If the government imposes a tariff such that the price of the good in the domestic market is P₂ when the international price is P₁:

A) the government revenue will equal the area represented by the triangle HFG.
B) the quantity of the good imported by the domestic country declines.
C) the quantity of the good exported by the domestic country declines.
D) the domestic market achieves equilibrium.
E) the government revenue will equal the area represented by the triangle ABH.

Correct Answer:

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