The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 21

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

---

Definitions:

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Placebos

Inert substances or treatments used as controls in experiments, testing the effectiveness of medical interventions without any active ingredients.

Inactive Substances

Substances that have no intended therapeutic effect; often used as placebos in clinical trials to assess the efficacy of active treatments.

Fake Treatments

Interventions or procedures that are designed to mimic real treatments but do not contain any active ingredients or therapeutic value, often used in the context of clinical trials as placebos.