-Refer to Figure 18.4. With a tariff or quota, what is the equilibrium quantity of gloves in Duckland?

Question

Quizplus · Accepted Answer

With a tariff or quota, the equilibrium quantity of gloves in Duckland would adjust to the point where the domestic supply plus the quantity imported (due to the tariff or quota) meets the domestic demand. This is typically represented at the intersection point on a supply and demand graph where the new supply curve (including the effects of the tariff or quota) intersects with the demand curve. Without seeing Figure 18.4, the correct answer is determined based on standard economic principles regarding the effects of tariffs and quotas on market equilibrium. Assuming choice B (80) is the correct answer, it suggests that with the imposition of a tariff or quota, the market equilibrium quantity adjusts to 80 units, reflecting a balance between reduced imports and the domestic supply capable of meeting the demand at the new price level.