Use the following figure to answer the questions : Figure 10-5 shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLYUS.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A.
-Refer to Figure 10-5.The price of bananas in the global market prior to the imposition of an import quota is _____.
A) P3
B) P1
C) P4
D) P2
Correct Answer:
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