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

Question 140

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good. 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 imposes the quota, consumer surplus will: A) decrease by areas E + F + G + H. B) increase by areas E + F + G + H. C) decrease by areas F + G. D) increase by areas A + B + C + D. If this economy's government imposes the quota, consumer surplus will:


A) decrease by areas E + F + G + H.
B) increase by areas E + F + G + H.
C) decrease by areas F + G.
D) increase by areas A + B + C + D.

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