Multiple Choice
The following figure shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLYUS.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A.
Figure 10-5
-Refer to Figure 10-5.Which of the following should necessarily be true in the absence of a quota?
A) EH = 0C + CQ
B) EH = 0Q
C) 0Q = 0Q'
D) 0A + BC = FG
Correct Answer:

Verified
Correct Answer:
Verified
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