Refer to the table below to answer the following questions.
Table 7.3.1
Canada's Market for Widgets

-Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.Canadian widget producers convince the government to protect the domestic industry from cheap imports.If the Canadian government sets an import quota of 8 million widgets,the resulting price of a widget in Canada will be ________,and domestic production will be ________.
A)$6;40 million
B)$7;36 million
C)$8;32 million
D)$9;28 million
E)$10;32 million

Question

Refer to the table below to answer the following questions.
Table 7.3.1
Canada's Market for Widgets
 
-Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.Canadian widget producers convince the government to protect the domestic industry from cheap imports.If the Canadian government sets an import quota of 8 million widgets,the resulting price of a widget in Canada will be ________,and domestic production will be ________.
A)$6;40 million 
B)$7;36 million 
C)$8;32 million 
D)$9;28 million 
E)$10;32 million

Quizplus · Accepted Answer

With an import quota of 8 million widgets, the domestic supply must meet the remaining demand. At a price of $9, domestic production is 28 million widgets, and with the 8 million imported, the total supply meets the demand.

Refer to the Table Below to Answer the Following Questions