Refer to the Figure Below: If Price Is $8

question 13

Multiple Choice

Refer to the figure below: If price is $8,

• A)there will be a surplus of 150 units.
• B)there will be a shortage of 150 units.
• C)price will fall.
• D)shortage of 75 units.
• E)surplus of 75 units.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to regulate trade and protect domestic industries.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, widely used as a sweetener in food and beverages.

Import Quota

A restriction by a country on the quantity of a good that can be imported over a given period.

Consumer Surplus

The difference in the amount consumers are prepared to pay versus what they actually pay for goods or services.