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 19.5

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 19.5
​

Quizplus · Accepted Answer

At the world price of $2.00 per unit, the quantity demanded is 150 units per month, and the quantity supplied is 50 units per month, resulting in an excess demand of 100 units per month. To least affect the level of imports, the import quota should be set at this excess demand, which is 100 units per month. Therefore, the answer is D) 100 units per month.

The Following Graph Shows the Demand for and the Supply