Refer to the Graph Shown for a Small Country That

question 62

Multiple Choice

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit.Starting from a free trade equilibrium, an import quota of 2,500 would cause domestic consumption to:

• A)increase from 6,100 to 7,400.
• B)increase from 2,400 to 3,600.
• C)decrease from 4,800 to 3,600.
• D)decrease from 7,400 to 6,100.

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Definitions:

Indicator

A sign or piece of information that indicates the state or level of something, often used in contexts like finance, science, or health.

Undesirable Tone

A manner of communication that may be perceived as inappropriate, negative, or counterproductive to the intended message.

Stiff

Often describes a lack of flexibility or easiness in movement, attitude, or in the context of writing, it can refer to a formal or overly formal tone.

Friendly

Exhibiting warmth, kindness, and approachability in interactions with others.