The Following Figure Shows the Domestic U

question 86

Multiple Choice

The following figure shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLY_US.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A.
Figure 10-5
-Refer to Figure 10-5.Which of the following should necessarily be true in the absence of a quota?

• A)EH = 0C + CQ
• B)EH = 0Q
• C)0Q = 0Q'
• D)0A + BC = FG

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