Solved

The Diagram Below Shows the Demand and Supply Curves for Refrigerators

Question 89

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
The diagram below shows the demand and supply curves for refrigerators in Canada.    FIGURE 34- 1 -Refer to Figure 34- 1, and assume the world price is P<sub>0</sub>. The Canadian government now imposes an import quota of the amount Q<sub>2</sub>Q<sub>4</sub>. The result would be that the price in Canada would: A) stay at P<sub>0 </sub>and consumption would stay at Q<sub>5</sub>. B) rise to P<sub>1</sub><sub> </sub>and consumption would decrease to Q<sub>4</sub>. C) rise to P<sub>2</sub><sub> </sub>and consumption would decrease to Q<sub>5</sub>. D) stay at P<sub>0 </sub>and consumption would rise to Q<sub>3</sub>. E) rise to P<sub>2 </sub>and consumption would decrease to Q<sub>4</sub>. FIGURE 34- 1
-Refer to Figure 34- 1, and assume the world price is P0. The Canadian government now imposes an import quota of the amount Q2Q4. The result would be that the price in Canada would:


A) stay at P0 and consumption would stay at Q5.
B) rise to P1 and consumption would decrease to Q4.
C) rise to P2 and consumption would decrease to Q5.
D) stay at P0 and consumption would rise to Q3.
E) rise to P2 and consumption would decrease to Q4.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents