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The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

Question 102

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.   If this economy decides to open to free trade and imposes a tariff, the domestic quantity demanded will: A) decrease from 1,500 units to 1,150 units. B) increase from 1,150 units to 1,500 units. C) increase from 815 units to 1,150 units. D) decrease from 1,150 units to 815 units. If this economy decides to open to free trade and imposes a tariff, the domestic quantity demanded will:


A) decrease from 1,500 units to 1,150 units.
B) increase from 1,150 units to 1,500 units.
C) increase from 815 units to 1,150 units.
D) decrease from 1,150 units to 815 units.

Correct Answer:

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