The Following Graph Shows the Demand for and the Supply

question 60

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 and an import quota of 50 units per month is imposed, then the decrease in consumer surplus can be represented by the area _____.

• A) f
• B) i
• C) h
• D) f, g, and h
• E) a, b, c, d, and e

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Definitions:

Order

A request by a customer or company to purchase goods or services, often formalized through a purchase order document.

Ledger

A book or collection of accounts in which account transactions are recorded, categorized by account type, and used to prepare financial statements.

Normal Balances

The typical balance sides (debit or credit) for different types of accounts in accounting, determining how increases or decreases are recorded.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset over its useful life to reflect its loss of value.