If a Country Is Small in World Markets and Imports

question 85

Multiple Choice

If a country is small in world markets and imports some product at the world price,the country effectively faces a horizontal foreign supply curve for that product.If the country then restricts the volume of imports by imposing an import quota,the effect on the domestic market for that product is to

• A)shift the entire supply curve to the left.
• B)make the domestic demand curve a horizontal line at the permitted quantity of imports.
• C)make the domestic demand curve a vertical line at the permitted quantity of imports.
• D)make the foreign supply curve a vertical line determined by the permitted quantity of imports.
• E)make the foreign supply curve a horizontal line at the current price.

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Definitions:

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Muscularis

A layer of muscle in the walls of various organs, including the digestive tract, responsible for movement and mixing of contents.

Segmental Contraction

A mechanism of movement in the gastrointestinal tract where segments of intestines alternately contract and relax to mix and propel contents.

Mass Movements

The large-scale movements of the colon responsible for the bulk movement of feces towards the rectum.