Figure 34-10

Figure 34-10 shows the effect on the market for disk drives of a(n)

Question

Figure 34-10 ​

Figure 34-10 shows the effect on the market for disk drives of a(n)

Quizplus · Accepted Answer

The graph shows a vertical line that represents the quota quantity limit. Any quantity of disk drives produced beyond this limit will not be allowed in the market. This restriction on quantity supplied by foreign producers will increase the price of the restricted good in the market, as shown by the shift from S1 to S2 and the resulting increase in equilibrium price from P1 to P2. Therefore, a quota on imports is the most appropriate choice among the given options.

Figure 34-10 ​ Figure 34-10 Shows the Effect on the Market for Disk

Figure 34-10 Figure 34-10 Shows the Effect on the Market for Disk