-Refer to the Above Diagram,where S_d and D_d Are the Domestic

question 142

Multiple Choice

-Refer to the above diagram,where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.A tariff of P_cP_t or an import quota of wy will:

• A) have the same effect on the volume of imports.
• B) have the same effect on domestic price.
• C) have the same effect on the revenues of domestic producers.
• D) do all of the above.

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