The Diagram Below Shows Supply and Demand Curves for Bicycles

question 53

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 34- 4
-For most products,Canada is a small economy with no market power in the global market.If Canada imposed a tariff on imported goods from a low- wage foreign country,this would

• A)increase wages in the low- wage foreign country.
• B)increase the Canadian price of the imported good.
• C)improve Canada's terms of trade.
• D)reduce the price of the imported good in Canada.
• E)equalize the costs of production between the two countries.

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Definitions:

Conglomerate Acquisition

A type of corporate action in which a company purchases another company that operates in a completely different industry.

Horizontal Acquisition

The purchase of a company operating at the same level of the value chain in similar or different industries to increase market share.

Vertical Acquisition

A corporate strategy where a company acquires another company in the same supply chain.