Exhibit 17.6 -Refer to Exhibit 17.6, Which Shows the Demand for and the Demand

Exhibit 17.6

-Refer to Exhibit 17.6, which shows the demand for and the supply of a good in a country. If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed, then _____

A) domestic production will increase from 100 to 200 units per month.
B) imports will increase from 25 to 50 units per month.
C) domestic production will increase from 100 to 175 units per month.
D) domestic production will increase from 100 to 125 units per month.
E) the total supply in the domestic market will increase from 100 to 150 units per month.