Use the following to answer questions:
Figure: Bananas
-(Figure: Bananas) Refer to the figure. If there is a $3 tariff on bananas, domestic consumers buy ______ fewer bananas and domestic producers grow ______ additional bananas.
A) 50,000; 10,000
B) 75,000; 10,000
C) 50,000; 20,000
D) 75,000; 20,000

Question

Use the following to answer questions:
Figure: Bananas 
-(Figure: Bananas) Refer to the figure. If there is a $3 tariff on bananas, domestic consumers buy ______ fewer bananas and domestic producers grow ______ additional bananas.
A) 50,000; 10,000 
B) 75,000; 10,000 
C) 50,000; 20,000 
D) 75,000; 20,000

Quizplus · Accepted Answer

The tariff raises the price of bananas by $3, which reduces the quantity demanded by domestic consumers by 50,000 and increases the quantity supplied by domestic producers by 10,000.

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