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Exhibit 18-7 -If the Country in Exhibit 18-7 Is Initially Trading Without

question 30

Multiple Choice

Exhibit 18-7 Exhibit 18-7   -If the country in Exhibit 18-7 is initially trading without restrictions at a world price of $2.00 and an import quota of 50 units per month is enacted, A) imports will not change B) imports will increase from 25 to 50 units per month C) domestic production will increase from 100 to 175 units per month D) domestic production will increase from 100 to 125 units per month E) domestic production will increase from 100 to 150 units per month
-If the country in Exhibit 18-7 is initially trading without restrictions at a world price of $2.00 and an import quota of 50 units per month is enacted,


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