Table 31.3.1 Canada's Market for Widgets

Multiple Choice

Table 31.3.1
Canada's Market for Widgets

-Table 31.3.1 shows the Canadian supply of and demand for widgets. Widgets are available on the world market for $7. Canadian widget producers convince the government to protect the domestic industry from cheap imports. If the Canadian government sets an import quota of 8 million widgets, the resulting price of a widget in Canada will be ________, and domestic production will be ________.

A) $6; 40 million
B) $7; 36 million
C) $8; 32 million
D) $9; 28 million
E) $10; 32 million