Restrictions on the Importation of Tomatoes Reduce the Supply Available

question 2

Multiple Choice

Restrictions on the importation of tomatoes reduce the supply available to the Canadian domestic market.Studies indicate that the demand for tomatoes is elastic.Compared to a free-trade situation,what is the effect of the import restrictions?

• A)They cause lower tomato prices and a reduction in consumer expenditure on tomatoes in Canada.
• B)They cause higher tomato prices and an increase in consumer expenditures on tomatoes in Canada.
• C)They cause higher tomato prices and a reduction in consumer expenditure on tomatoes in Canada.
• D)They cause lower tomato prices and an increase in consumer expenditure on tomatoes in Canada.

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Definitions:

Portfolio's Risk

The overall risk associated with holding a portfolio of investments, considering how the risks of the individual investments affect the portfolio as a whole.

Stand-alone Risk

Stand-alone risk refers to the risk associated with investing in a single asset or project, without considering the diversity or portfolio effects.

Risk Impacts

The potential negative consequences that uncertain events or conditions may have on an organization's ability to achieve its objectives.

Market Risk

Market risk is the potential for an investor to experience losses due to factors that affect the overall performance of the financial markets.