Use the Following Figure to Answer the Questions : Figure

question 33

Multiple Choice

Use the following figure to answer the questions : Figure 10-5 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.
-Refer to Figure 10-5.The price of bananas in the global market prior to the imposition of an import quota is _____.

• A)P₃
• B)P₁
• C)P₄
• D)P₂

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Definitions:

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural, human, and capital resources.

Production

The process of creating goods and services from various inputs like labor, technology, and raw materials.

Pollution

The contamination of the natural environment with harmful substances or energy, leading to adverse effects on living organisms and ecosystems.

Externality

An economic side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices, either positively or negatively.