Figure 7.3 Assume That the Canadian Government Limits the Import of Peanuts

Multiple Choice

Figure 7.3

Assume that the Canadian government limits the import of peanuts.
-Refer to Figure 7.3.Without the quota, the domestic price of peanuts equals the world price which is $2.00 per kilogram.What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

A) 10 thousand kilograms
B) 28 thousand kilograms
C) 30 thousand kilograms
D) 40 thousand kilograms