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.With a quota in place, what is the quantity consumed in the domestic market and how much of this is supplied by domestic producers?

A) Domestic consumption equals 28 thousand kilograms of which 18 thousand kilograms are produced by domestic producers.
B) Domestic consumption equals 40 thousand kilograms of which 22 thousand kilograms are produced by domestic producers.
C) Domestic consumption equals 34 thousand kilograms of which 16 thousand kilograms are produced by domestic producers.
D) Domestic consumption equals 34 thousand kilograms of which 18 thousand kilograms are produced by domestic producers.