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The Diagram Below Shows Supply and Demand Curves for Bicycles

question 98

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical. The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.   FIGURE 33-4 -Refer to Figure 33-4.Suppose there is free trade in bicycles and the world price is $200.If Canada then imposes a 50% import tariff on bicycles,domestic consumption will A) increase by 30 000. B) decrease by 10 000. C) increase by 20 000. D) decrease by 20 000. E) increase by 10 000. FIGURE 33-4
-Refer to Figure 33-4.Suppose there is free trade in bicycles and the world price is $200.If Canada then imposes a 50% import tariff on bicycles,domestic consumption will


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