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-Refer to Figure 15

Question 60

Multiple Choice

-Refer to Figure 15.2. The diagram shows that the effect of the tariff was: A) to raise domestic production from Q<sub>S</sub> to Q<sub>S</sub>' with no effect on total purchases. B) to lower domestic production from Q<sub>S</sub>' to Q<sub>S</sub> and raise imports from Q<sub>S</sub>' to Q<sub>D</sub>. C) to raise prices, lower total consumption to Q<sub>D</sub>' and raise domestic production to Q<sub>S</sub>'. D) to lower prices and increase total consumption to Q<sub>D</sub> based on higher domestic production.
-Refer to Figure 15.2. The diagram shows that the effect of the tariff was:


A) to raise domestic production from QS to QS' with no effect on total purchases.
B) to lower domestic production from QS' to QS and raise imports from QS' to QD.
C) to raise prices, lower total consumption to QD' and raise domestic production to QS'.
D) to lower prices and increase total consumption to QD based on higher domestic production.

Correct Answer:

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