Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be:

a. PaPt times wy.
b. PcPa times x.
c. PcPt times z.
d.  PcPt times wy.

ANSWER:

d.  PcPt times wy.