Table 31.3.1 Canada's Market for Widgets

question 49

Multiple Choice

Table 31.3.1
Canada's Market for Widgets

-Table 31.3.1 shows the Canadian supply of and demand for widgets. Widgets are available on the world market for $7. Canadian widget producers convince the government to protect the domestic industry from cheap imports. If the Canadian government sets an import quota of 8 million widgets, the resulting price of a widget in Canada will be ________, and domestic production will be ________.

• A)$6; 40 million
• B)$7; 36 million
• C)$8; 32 million
• D)$9; 28 million
• E)$10; 32 million

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Definitions:

Burglarized

The act of illegally entering a building with intent to commit theft.

Policy Cover

The extent of protection provided by an insurance policy against specific risks or occurrences.

Theft

In criminal law, knowingly taking or obtaining control over the property of another without consent, using deceit, threats, or coercion.

Binder

An oral or a written memorandum of an agreement for insurance intended to provide temporary insurance coverage until the policy is formally accepted.