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Effects of Environmental Regulations on Domestic Production and Imports

Question 2

Multiple Choice

Effects of Environmental Regulations on Domestic Production and Imports Effects of Environmental Regulations on Domestic Production and Imports   -Refer to the figure above.The graph represents consumers and suppliers in country that relies on imports.Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve.The import supply curve is horizontal because A) the world produces a relatively small amount of this good B) no matter how much this country buys, their demand does not impact world price C) this is a renewable good, for which there is no shortage D) all of the above
-Refer to the figure above.The graph represents consumers and suppliers in country that relies on imports.Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve.The import supply curve is horizontal because


A) the world produces a relatively small amount of this good
B) no matter how much this country buys, their demand does not impact world price
C) this is a renewable good, for which there is no shortage
D) all of the above

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