Refer to Figure 35.6: If S₁ represents the U.S.domestic supply of a good,what does S₂ most likely represent?

Question

Quizplus · Accepted Answer

S₂ represents the U.S. supply under quota-restricted trade, as it shows a decrease in the quantity supplied compared to S₁, which represents the U.S. domestic supply. This decrease is likely due to restrictions on the amount of the good that can be imported, imposed by a quota system.