Tariff Removal Reduces Domestic Output Steps:

• Identify pre-tariff world price line (likely horizontal at Pw).
• Note pre-removal (with tariff) domestic production at intersection of supply curve and tariff price (higher output, e.g., point W).
• After removal, price falls to world level, shifting production along supply curve to lower output (e.g., point V).
• Change in domestic production is segment VW (reduction from higher to lower quantity).

Why A is correct:

• Tariff removal lowers producer price to world level, decreasing quantity supplied per supply curve law (upward-sloping supply means lower price yields less output).

Why the others are wrong:

• B: XV likely measures import change, not domestic production.
• C: XY likely measures consumption increase, irrelevant to production.
• D: ZY likely measures deadweight loss or another effect, not output reduction.

Final answer: A