In the Diagram in Question #8 Above, Suppose That Country

Multiple Choice

In the diagram in Question #8 above, suppose that country A, from this initial situation Where its tariff is applied to both countries B and C, now forms a customs union with Country B. With this customs union in place, imports into country A are distance __________.

A) Q₂Q₅, all of which constitute trade diversion from the non-customs union country.
B) Q₂Q₅, only part of which constitute trade diversion from the non-customs union Country.
C) Q₃Q₄, all of which constitute trade diversion from the non-customs union country.
D) Q₁Q₆, all of which constitute trade diversion from the non-customs union country.