Refer to Figure 35.5.If S₁ represents the U.S.domestic supply of a good and S₂ represents supply in the United States under conditions of free trade,what does S₃ most likely represent?

Question

Quizplus · Accepted Answer

S₃ most likely represents U.S. supply under tariff-restricted trade, as it falls between the domestic supply and supply under conditions of free trade, indicating that there is some restriction on the quantity of imports allowed through the imposition of tariffs.