The Diagram Below Shows the Demand and Supply Curves for Refrigerators

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada. FIGURE 33-1 Refer to Figure 33-1.Suppose P₀ is the world price.If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P₀ to P₁,the consequence would be that

A) both domestic production and domestic consumption would decrease by equal amounts.
B) domestic production will increase from Q₁ to Q₂ and domestic consumption will fall from Q₅ to Q₄.
C) domestic production will increase from Q1 to Q₃ and domestic consumption will fall from Q₅ to Q₃.
D) domestic production will exceed domestic consumption.
E) both domestic production and domestic consumption would increase by equal amounts.