The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 74

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 34- 1
-Refer to Figure 34- 1.If we compare the effect of an import tariff with the effect of an import quota,both of which cause the Canadian price to increase by the same amount,the major difference between the two policies is:

• A)the tariff directly affects the price consumers pay whereas the quota has neither direct nor indirect price effects.
• B)the tariff does not directly affect the price consumers pay whereas the quota does.
• C)the tariff raises revenue for the government whereas the quota benefits foreign producers.
• D)the quota does not directly reduce the quantity whereas the tariff does.
• E)the tariff raises revenue for the protected producers whereas the quota benefits the government.

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Definitions:

Caffeine

A stimulant found in coffee, tea, and various other beverages that affects the central nervous system, resulting in increased alertness and reduced fatigue.

Withdrawal

The process or experience of stopping or reducing the use of a psychoactive substance, characterized by physical and mental symptoms that vary based on the substance.

Drug Tolerance

The body's reduced response to a drug with repeated use, requiring higher doses to achieve the same effect.

Regular Use

refers to the consistent and habitual use of a substance or engagement in an activity, potentially leading to dependency.