The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit,the import quota that would least affect the level of imports in this country is_____.
Figure 17.5

Question

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit,the import quota that would least affect the level of imports in this country is_____. ​
Figure 17.5​
​

Quizplus · Accepted Answer

The import quota is a limit on the quantity of goods that can be imported into a country. To determine the import quota that least affects the level of imports, we need to find the point where the world price intersects the supply curve of the country. In this case, the intersection point is at a quantity of 100 units and a price of $2.00 per unit. Therefore, an import quota of 100 units per month would least affect the level of imports as it matches the equilibrium point. Any other import quota below 100 units would reduce the level of imports, while an import quota above 100 units would increase the level of imports.

Thus, the correct answer is D) 100 units per month.

The Following Graph Shows the Demand for and the Supply