The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 122

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada. FIGURE 33-1
-Refer to Figure 33-1.Suppose P₀ is the world price.If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P₀ to P₁,the consequence would be that

• A)both domestic production and domestic consumption would decrease by equal amounts.
• B)domestic production will increase from Q₁ to Q₂ and domestic consumption will fall from Q₅ to Q₄.
• C)domestic production will increase from Q1 to Q₃ and domestic consumption will fall from Q₅ to Q₃.
• D)domestic production will exceed domestic consumption.
• E)both domestic production and domestic consumption would increase by equal amounts.

Apply knowledge of conflict-handling styles to analyze conflict situations and recommend solutions.

Understand the basics of negotiation, including stages and tactics.

Recognize win-lose and win-win negotiation strategies and their outcomes.

Evaluate the effectiveness of different conflict management styles in specific situations.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales, such as raw materials and labor expenses.

Steel

An alloy of iron and carbon, and sometimes other elements, known for its high tensile strength and ability to be shaped into various forms.

Total Cost Curve

A graphical representation that shows how the total cost of production changes as the quantity of output changes.

Output

In economics, this refers to the total amount of goods and services produced by an economic system over a given period.