Suppose an Import-Competing Firm Is Imperfectly Competitive

Multiple Choice

Suppose an import-competing firm is imperfectly competitive. Replacement of an export tariff with an import quota that yields the same level of imports will ________ market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) have no effect on; have no effect on; have no effect on; decrease; decrease
B) increase; increase; increase; decrease; have an ambiguous effect on
C) decrease; decrease; increase; decrease; increase
D) increase; increase; decrease; decrease; decrease
E) increase; have no effect on; decrease; decrease; increase