The Following Graph Shows the Demand for and the Supply

question 136

Multiple Choice

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit,the import quota that would least affect the level of imports in this country is_____.

• A)$3.00 per unit
• B)$2.00 per unit
• C)50 units per month
• D)100 units per month
• E)150 units per month

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Definitions:

Accounting Profits

The total revenue of a company minus the explicit costs and depreciation expenses.

Total Costs

Total costs represent the complete sum of all expenses incurred by a business in the production of goods or services, including both fixed and variable costs.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, or property taxes, consistent regardless of business activity.