The Figure Below Shows the Demand (D) and Supply (S)

question 109

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of corn syrups.
Figure 20.3

-In Figure 20.3, suppose an import quota of 30 gallons of corn syrup is imposed. If the world price per gallon is $4:

• A) there will be an excess domestic demand of approximately 35 gallons.
• B) the domestic market will be in equilibrium.
• C) there will be an excess domestic demand for 10 gallons.
• D) there will be an excess supply of 20 gallons.
• E) there will be an excess domestic demand for 20 gallons.

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