Multiple Choice
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.Sd + Q is the product supply curve after an import quota is imposed.The size of the import quota:
A) is vz.
B) is vy.
C) is wy.
D) cannot be determined.
Correct Answer:
Verified
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A)increase the price and