Refer to the Graph Above, Where S_d and D_d Are

question 55

Multiple Choice

Refer to the graph above, where S_d and D_d are the domestic supply and demand for a product. The world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed compared with the total revenue received by foreign producers when a $4 per unit tariff is imposed?

• A) $0 revenue difference
• B) $80 more revenue with a quota than with a tariff
• C) $200 more revenue with a quota than with a tariff
• D) $120 more revenue with a tariff than with a quota

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Definitions:

Theoretical Yield

The maximum amount of product that could be formed from given amounts of reactants in a chemical reaction, assuming no losses.

Carbon Dioxide

This is a gas that has no color or odor, generated through the combustion of carbon-based substances and the respiratory process, and is consumed by plants for photosynthesis.

Methane

A simple alkane hydrocarbon with the formula CH₄, known as a potent greenhouse gas and a primary component of natural gas.

Potassium Chloride

A metal halide salt composed of potassium and chlorine, used in medicine, scientific applications, and food processing.