Recall the Application About the Cost of Using Import Restrictions

question 103

Multiple Choice

Recall the Application about the cost of using import restrictions to protect jobs in the lumber industry to answer the following question(s) .
-Recall the Application.Softwood lumber is subject to import quotas and tariffs,and these policies protect roughly 600 jobs in the industry.Which of the following statements is true about the impact of protecting these jobs?

• A) Consumer surplus increases.
• B) Consumer surplus decreases.
• C) Producer surplus decreases.
• D) none of the above

Calculate the optimal consumption bundle using the marginal utility per dollar spent.

Describe the substitution and income effects on consumer choice and demand.

Distinguish between normal goods and Giffen goods based on their reaction to price changes.

Utilize consumer equilibrium tables to determine utility-maximizing combinations of goods under budget constraints.