Figure 7.3

Assume that the Canadian government limits the import of peanuts.
-Refer to Figure 7.3.If there was no quota, how many kilograms of peanuts would domestic consumers purchase and what quantity would be imported?
A)28 thousand kilograms of which 18 thousand kilograms would be imported
B)40 thousand kilograms of which 12 thousand kilograms would be imported
C)40 thousand kilograms of which 30 thousand kilograms would be imported
D)40 thousand kilograms all of which would be imported

Question

Figure 7.3
  
Assume that the Canadian government limits the import of peanuts.
-Refer to Figure 7.3.If there was no quota, how many kilograms of peanuts would domestic consumers purchase and what quantity would be imported?
A)28 thousand kilograms of which 18 thousand kilograms would be imported 
B)40 thousand kilograms of which 12 thousand kilograms would be imported 
C)40 thousand kilograms of which 30 thousand kilograms would be imported 
D)40 thousand kilograms all of which would be imported

Quizplus · Accepted Answer

Without a quota, domestic consumers would purchase 40 thousand kilograms, and 30 thousand kilograms would be imported, as domestic production would only cover 10 thousand kilograms.

Figure 7.3 Assume That the Canadian Government Limits the Import of Peanuts