The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 85

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 34- 1
-Refer to Figure 34- 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)rise to P₁ and consumption would decrease to Q₄.
• C)rise to P₂ and consumption would decrease to Q₅.
• D)stay at P₀ and consumption would rise to Q₃.
• E)rise to P₂ and consumption would decrease to Q₄.

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Definitions:

Cooperative Centrale Raiffeisen-Boerenleenbank B.A.

A major cooperative banking institution, commonly known as Rabobank, headquartered in the Netherlands, known for its focus on agricultural financing.

Negotiable

describes an item, typically a financial instrument like a check or bill of exchange, that can be endorsed and transferred from one party to another.

UCC Article 3

A portion of the Uniform Commercial Code that governs negotiable instruments, including checks, promissory notes, and drafts.

Definite Time

A term used to denote a specific, clear, and unambiguous point or period in time agreed upon in various contexts, such as contracts or scheduling.