Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand for a product. The world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed compared with the total revenue received by foreign producers when a $4 per unit tariff is imposed?
A) $0 revenue difference
B) $80 more revenue with a quota than with a tariff
C) $200 more revenue with a quota than with a tariff
D) $120 more revenue with a tariff than with a quota
Correct Answer:
Verified
Q277: Which of the following is a likely
Q290: The World Trade Organization is the successor
Q299: Which is not a commonly heard argument
Q305: Which of the following is a valid
Q306: Common arguments often raised to present the
Q308: The following are commonly used arguments for
Q310: Which is a valid counterargument to the
Q311: "The nation needs to prevent foreign nations
Q313: The use of tariffs and quotas for
Q314: Which of the following is a valid
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents