Multiple Choice
Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A tariff of PcPt or an import quota of wy will:
A) have the same effect on the volume of imports.
B) have the same effect on domestic price.
C) have the same effect on the revenues of domestic producers.
D) do all of the above.
Correct Answer:
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