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.The effect of the import quota on domestic price and domestic consumption is:
A) the same as that of a tariff of PcPt.
B) the same as that of a tariff of PtPa.
C) the same as that of a tariff of PcPa.
D) to raise price by more and reduce consumption less than a tariff of PcPt.
Correct Answer:
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Q130: Q131: Q132: Q133: The following table is domestic supply and Q134: Q136: Q137: A protective tariff will: Q138: The following table is domestic supply and Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)increase the price and