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Use the Following to Answer Question

Question 206

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Use the following to answer question: Use the following to answer question:   -(Figure: The Market for Calculators) Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators.The world price,P<sub>W</sub>,equals $100.The government imposes a quota restricting imports to 25 calculators.The domestic price rises to _____ and the quota rent is equal to area _____. A) $120;K + L B) $150;K + H + I + L C) $120;H + I D) $150;G + H + I + J
-(Figure: The Market for Calculators) Use Figure: The Market for Calculators.Assume that S and D represent the domestic demand and supply of calculators.The world price,PW,equals $100.The government imposes a quota restricting imports to 25 calculators.The domestic price rises to _____ and the quota rent is equal to area _____.


A) $120;K + L
B) $150;K + H + I + L
C) $120;H + I
D) $150;G + H + I + J

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