Figure 9-3 Since 1953 the United States Has Imposed

question 173

Multiple Choice

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota.
-As a result of the tariff on Chinese tires, U.S. consumers are estimated to have spent ________ on imported tires and ________ on U.S.-produced tires.

• A) more; more
• B) more; less
• C) less; more
• D) less; less

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Definitions:

Buyer Responsiveness

The degree to which consumers adjust their demand for a product or service in response to changes in price or other factors.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Inelastic

Pertains to a scenario where the need for a product or service shows little reaction to fluctuations in its price.

Per Unit Price

The cost associated with a single unit of a product, illustrating the price at which one unit of the product can be purchased.