The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 152

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 33-1
-Refer to Figure 33-1,and assume the world price is P0.The Canadian government now imposes an import quota of the amount Q2Q4.The result would be that the price in Canada would

• A)stay at P0 and consumption would stay at Q5.
• B)stay at P0 and consumption would rise to Q3.
• C)rise to P2 and consumption would decrease to Q5.
• D)rise to P2 and consumption would decrease to Q4.
• E)rise to P1 and consumption would decrease to Q4.

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Definitions:

Global Commodity Chain

A worldwide network of production and distribution processes through which a product passes until it reaches the consumer.

Rogue Agencies

Agencies that operate with disregard for laws or regulations, often pursuing their own agendas.

Bureaucratic Organizations

Organizations characterized by formal procedures, hierarchy, and a clear division of labor intended to increase efficiency.

Transnational Corporations

Large companies that operate and have assets or production facilities in more than one country, often exerting significant economic influence across national borders.