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 effect of the import quota on domestic price and domestic consumption is:
A) the same as that of a tariff of PcPt.
B) the same as that of a tariff of PtPa.
C) the same as that of a tariff of PcPa.
D) to raise price by more and reduce consumption less than a tariff of PcPt.
Correct Answer:
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A)increase the price and