Figure 9.9
-Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. An alternative to the quota that would have the same impact on the number of imports would be a tariff of
A) $2,500.
B) $5,000.
C) $15,000.
D) $20,000.
E) $13,125,000.

Question

Figure 9.9
-Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. An alternative to the quota that would have the same impact on the number of imports would be a tariff of
A) $2,500. 
B) $5,000. 
C) $15,000. 
D) $20,000. 
E) $13,125,000.

Quizplus · Accepted Answer

The correct answer is A because a tariff of $2,500 would raise the price of imported trucks by $2,500, which would reduce the quantity of imports to 3,000.

Figure 9.9 -Refer to Figure 9.9. Now Suppose an Import Quota of Quota