Refer to the Following Graph

question 65

Multiple Choice

Refer to the following graph. Demand and supply are initially D and S1, respectively. Which of the following best describes the effect of a $0.50 per pound tariff on Danish hams imported into the United States?

• A) Supply shifts from S1 to S2; quantity sold rises to 100 thousand pounds and price paid by consumers declines to $1.75 a pound
• B) Neither supply nor demand shift, but price paid by consumers declines to $1.50 a pound while quantity sold remains at 80 thousand pounds
• C) Supply shifts from S1 to S0; quantity sold declines to 60 thousand pounds and price paid by consumers rises to $2.50 a pound
• D) Supply shifts from S1 to S0; quantity sold declines to 60 thousand pounds and price paid by consumers rises to $2.25 a pound

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Definitions:

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1980 Refugee Act

A United States federal law that redefined the status of refugees, established systematic procedures for the admission of refugees into the U.S., and set annual worldwide limits on refugee admissions.

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Differences in treatment, outcomes, and opportunities among individuals or groups based on race, often signifying systemic inequality.

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Wealth refers to the accumulation of valuable resources and assets, such as money, real estate, and investments, distinguishing individuals or groups in terms of economic status.