Refer to Figure 34- 1

question 96

Multiple Choice

Refer to Figure 34- 1. Suppose that P0 is the world price. If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P0 to P1, the consequence would be that

• A) domestic production will increase from Q1 to Q3 and domestic consumption will fall from Q5 to Q3.
• B) domestic production will exceed domestic consumption.
• C) domestic production will increase from Q1 to Q2 and domestic consumption will fall from Q5 to Q4.
• D) both domestic production and domestic consumption would increase by equal amounts.
• E) both domestic production and domestic consumption would decrease by equal amounts.

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Definitions:

Ontario Securities Commission

The regulatory body responsible for overseeing the securities industry in Ontario, Canada, ensuring fair and transparent markets.

Securities Act

A U.S. law enacted in 1933 that regulates the offer and sale of securities to protect investors from fraud.

Investment Dealer

A business entity or individual that engages in the buying and selling of securities for its clients or its own account.

Securities Commission

A regulatory body charged with overseeing the securities markets to protect investors and maintain fair, efficient, and transparent systems.