The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 91

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 21.2
- In Figure 21.2,if the world price of wheat is $35 and a $15 tariff is imposed:

• A)domestic consumption will decrease from 400 to 350 bushels of wheat.
• B)the government will collect $200 in revenue from the tariff.
• C)domestic consumption will increase from 150 to 200 bushels of wheat.
• D)imports will be eliminated.
• E)domestic consumption will increase from 150 to 300 bushels of wheat.

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Definitions:

Extraction Cost

The expenses associated with removing natural resources from the earth or sea, including labor, equipment, and regulatory compliance costs.

Property Rights

The legal rights to use, control, and benefit from resources, assets, or property.

Conservation

The sustainable management and use of natural resources to prevent depletion and harm to the environment.

Extraction Quantity

The volume or amount of natural resources, such as minerals, oil, or gas, that is removed from the earth or harvested.