Multiple Choice
-Refer to the diagram above,where S and D are the domestic supply and demand for a product.The world price of the product is $6.What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed,compared with the total revenue received by foreign producers when a $4 per unit tariff is paid?
A) There would be no difference.
B) There would be $80 more revenue with a quota than with a tariff.
C) There would be $200 more revenue with a quota than with a tariff.
D) There would be $120 more revenue with a tariff than with a quota.
E) There would be $220 more revenue with a tariff than with a quota.
Correct Answer:

Verified
Correct Answer:
Verified
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