Use the Following Figure to Answer the Questions : Figure

Multiple Choice

Use the following figure to answer the questions : Figure 10-5 shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLY_US.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A.
-Which of the following correctly identifies the effect of an import quota on a good?

A) Domestic producers do not gain from an import quota.
B) The gain to domestic producers is higher than the loss to domestic consumers.
C) Prices in the global market will fall due to the imposition of an import quota.
D) Domestic consumers bear the burden of an import quota in terms of higher domestic prices.