The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 31

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 34- 1
-Refer to Figure 34- 1. Suppose that P₀ is the world price and Canada imports refrigerators. Suppose the Canadian government then responds to political pressure from domestic refrigerator manufacturers and imposes a tariff high enough that all imports are eliminated. As a result of this tariff, the price and quantity of refrigerators in Canada will be, respectively,

• A)P₀ and Q₁.
• B)P₀ and Q₅.
• C)P₁ and Q₂.
• D)P₁ and Q₃.
• E)P₂ and Q_3.

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