The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
If this economy's government decides to impose a quota instead of a tariff:
A) areas F and H will become deadweight loss instead of transferred surplus.
B) area E will represent tax revenues instead of transferred surplus.
C) areas F + G + H will become deadweight loss instead of tax revenues.
D) area G will represent quota rents instead of tax revenues.
Correct Answer:
Verified
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A)a tax on goods
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A)acts to
Q125: The graph shown demonstrates the domestic demand
Q126: As a general rule, free trade:
A)increases the
Q128: The graph shown demonstrates the domestic demand
Q129: The graph shown demonstrates the domestic demand
Q130: The graph shown demonstrates the domestic demand
Q131: The graph shown demonstrates the domestic demand
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