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The Following Figure Illustrates the Demand and Supply Curves for PCs

Question 15

Multiple Choice

The following figure illustrates the demand and supply curves for PCs in a small country.
The following figure illustrates the demand and supply curves for PCs in a small country.    -Suppose the government used a tariff to achieve the same level of protection as the quota illustrated above. Comparing the two outcomes (quota versus tariff)  we can conclude: A)  consumers lose area a. B)  the government can collect the tariff or sell the quotas to receive area e. C)  domestic producers gain under both a tariff and a quota. D)  All of the above E)  None of the above
-Suppose the government used a tariff to achieve the same level of protection as the quota illustrated above. Comparing the two outcomes (quota versus tariff) we can conclude:


A) consumers lose area a.
B) the government can collect the tariff or sell the quotas to receive area e.
C) domestic producers gain under both a tariff and a quota.
D) All of the above
E) None of the above

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