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Suppose That the Free-Trade Offer Curve of Country I Is

Question 21

Multiple Choice

Suppose that the free-trade offer curve of country I is drawn with country I's exports of good A on the horizontal axis and country I's imports of good B on the vertical axis. If country I now places an import quota of 100 units of good B, country I's offer curve


A) will have its normal free-trade appearance up to 100 units on the vertical axis and then will become a horizontal line back to the vertical axis.
B) will have its normal free-trade appearance up to 100 units on the horizontal axis and then will become a vertical line going upward and parallel to the vertical axis.
C) will shift to the left or vertically upward by 100 units at each level of exports of good A.
D) will shift to the right or vertically downward by 100 units at each level of exports of good A.

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