-The Effect of the Import Quota on Domestic Price and Domestic

question 49

Multiple Choice

-The effect of the import quota on domestic price and domestic consumption is:

• A)the same as that of a tariff of P_cP_t
• B)the same as that of a tariff of P_tP_a
• C)the same as that of a tariff of P_cP_a
• D)to raise price by more and reduce consumption by less than a tariff of P_cP_t
• E)to raise price by less and reduce consumption by more than a tariff of P_cP_t

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