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The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

Question 115

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.   If this economy decides to open to free trade and imposes a tariff, the domestic quantity supplied will increase from: A) 815 units to 1,500 units. B) 815 units to 1,150 units. C) 250 units to 500 units. D) 250 units to 815 units. If this economy decides to open to free trade and imposes a tariff, the domestic quantity supplied will increase from:


A) 815 units to 1,500 units.
B) 815 units to 1,150 units.
C) 250 units to 500 units.
D) 250 units to 815 units.

Correct Answer:

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