-Assuming There Is No Tariff,the Imposition of the Import Quota

question 28

Multiple Choice

-Assuming there is no tariff,the imposition of the import quota:

• A)will increase the revenue of the Canadian government by areas G + H
• B)will increase the revenue of the Canadian government by areas E + F + G + H + J
• C)leads to an extra revenue to foreign producers equal to areas G + H, which partly counteracts the loss they bear because of lower quantities supplied
• D)will increase the revenues of foreign producers by area E
• E)will increase the revenues of foreign producers by area F + J

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Definitions:

Quantity Purchased

The total number of units of a product bought by consumers at a given price level.

Product Price

The amount of money required to purchase a specific product, determined by various factors including cost of production, demand, and competition.

Demand

The desire to own something and the ability to pay for it, represented by how much of a good or service consumers are willing to buy at different prices.

Schedule

A plan that outlines specific times at which certain tasks, events, or operations are to occur.