The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-Government standards for products sold in the domestic market can have the effect of protecting domestic producers from foreign competition.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Government standards for products sold in the domestic market can have the effect of protecting domestic producers from foreign competition.

Quizplus · Accepted Answer

Government standards, such as safety, environmental, or quality requirements, can act as non-tariff barriers by making it more difficult or costly for foreign producers to enter or compete in the domestic market, thereby protecting domestic producers.

The Figure Below Shows the Demand (D) and Supply (S)