This Graph Demonstrates the Domestic Demand and Supply for a Good,as

question 128

Multiple Choice

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good.
According to the graph shown,if this economy were open to free trade,and decided to impose a tariff,the domestic quantity supplied would increase from:

• A)250 to 500.
• B)815 to 1500.
• C)815 to 1150.
• D)250 to 815.

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Definitions:

Pollutants

Substances introduced into the environment that cause harm or discomfort to the ecosystem or living organisms.

Corrective Taxes

Taxes implemented to correct the market outcomes that are not efficient by internalizing external costs, often used in environmental policy to address pollution.

Regulations

Standards and rules formulated by governmental or nongovernmental organizations to govern conduct within certain spheres of activity.

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.