Figure 18.3
-Refer to Figure 18.3.With a tariff or quota,the equilibrium quantity is

Question

Quizplus · Accepted Answer

With a tariff or quota, the domestic price increases and the quantity demanded decreases, while the quantity supplied increases. The new equilibrium is where the domestic supply intersects with the domestic demand curve. In this case, the new equilibrium quantity is 80, which is the intersection of the domestic demand curve and the domestic supply curve with the tariff or quota. Therefore, the best choice is C.

Figure 18.3 -Refer to Figure 18.3.With a Tariff or Quota,the Equilibrium Quantity