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The Figure Given Below Shows the Market for MP3 Players

Question 5

Multiple Choice

The figure given below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players before the imposition of the quota. (Sd + QQ) is the total available domestic supply curve after the quota has been imposed. Referring to the figure, if instead of using a quota to limit imports they were limited by a voluntary export restraint (VER) , the loss to the nation would be: The figure given below shows the market for MP3 players in a small country. D<sub>d</sub> and S<sub>d</sub> are the domestic demand and domestic supply curves of the MP3 players before the imposition of the quota. (S<sub>d</sub> + Q<sub>Q</sub>)  is the total available domestic supply curve after the quota has been imposed. Referring to the figure, if instead of using a quota to limit imports they were limited by a voluntary export restraint (VER) , the loss to the nation would be:   A) $35 million. B) $50 million. C) $85 million. D) $195 million.


A) $35 million.
B) $50 million.
C) $85 million.
D) $195 million.

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