Below Is a Graph Illustrating the Market for Mustard Seeds

question 53

Multiple Choice

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ) .The world price of mustard seeds is $100.

-Refer to the graph above to answer this question.Suppose that the government introduces a quota of 400 on imports of mustard seeds,what will be the new price?

• A)$40.
• B)$100.
• C)$120.
• D)$140.
• E)Cannot be determined.

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