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Refer to the Accompanying Graph, Where Sd and Dd Are

Question 211

Multiple Choice

Refer to the accompanying graph, where S<sub>d</sub> and D<sub>d</sub> are the domestic supply and demand for a product. The world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed compared with the total revenue received by foreign producers when a $4 per unit tariff is imposed? A) $0 revenue difference B) $80 more revenue with a quota than with a tariff C) $200 more revenue with a quota than with a tariff D) $120 more revenue with a tariff than with a quota Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand for a product. The world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed compared with the total revenue received by foreign producers when a $4 per unit tariff is imposed?


A) $0 revenue difference
B) $80 more revenue with a quota than with a tariff
C) $200 more revenue with a quota than with a tariff
D) $120 more revenue with a tariff than with a quota

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