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The Diagram Below Shows the Domestic Demand and Supply Curves

question 84

Multiple Choice

The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical. The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is P<sub>W</sub>.Assume that all cotton towels are identical.   FIGURE 33-3 -Refer to Figure 33-3.If the Canadian government imposes a quota on imported cotton towels of the amount (Q<sub>3</sub> - Q<sub>2</sub>) ,then foreign producers' revenues from their sales in Canada will be equal to the area A) B + C + D. B) B + C + D + G + H + I. C) C + H. D) H. E) G + H + I. FIGURE 33-3
-Refer to Figure 33-3.If the Canadian government imposes a quota on imported cotton towels of the amount (Q3 - Q2) ,then foreign producers' revenues from their sales in Canada will be equal to the area


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