Refer to the Above Diagram, Where S_d and D_d Are

question 95

Multiple Choice

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and Pc is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

• A)the same as that of a tariff of P_cP_t.
• B)the same as that of a tariff of P_tP_a.
• C)the same as that of a tariff of P_cP_a.
• D)to raise price by more and reduce consumption less than a tariff of P_cP_t.

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Definitions:

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier or teller, guaranteeing payment to the payee.

Telephone Consumer Protection Act

A law enacted in 1991 in the United States that restricts telemarketing and the use of automated telephone equipment.

Telephone Solicitation

The practice of contacting individuals by phone to promote services or products, often unsolicited.

Limited Check

A check that is void after a certain time limit; commonly used for payroll.