The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 56

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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