The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 17

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 20.2 In Figure 20.2, if the world price of wheat is $35 and a $15 tariff is imposed:

• A)domestic consumption will decrease from 400 to 350 bushels of wheat.
• B)the government will collect $200 in revenue from the tariff.
• C)domestic consumption will increase from 150 to 200 bushels of wheat.
• D)imports will be eliminated.
• E)domestic consumption will increase from 150 to 300 bushels of wheat.

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Definitions:

Futures Exchanges

Marketplaces where futures contracts and options on futures contracts are traded, facilitating the buying and selling of commodities or financial instruments at a predetermined future date.

Delivery Date

The specific date on which a financial transaction, especially pertaining to futures or options contracts, is scheduled to be settled or executed.

Futures Contracts

Standardized agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Actual Delivery

The physical exchange of an asset between seller and buyer or the completion of a transaction, as opposed to a contract being settled by other means.