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Refer to the Graph Above, Where Sd and Dd Are

Question 125

Multiple Choice

Refer to the graph above, where S<sub>d</sub> and D<sub>d</sub> are the domestic supply and demand curves for a product. The world price of the product is $6. If an import quota of 40 units were imposed on the product, then the equilibrium price would be: A) $6 and the quantity consumed 80 units B) $8 and the quantity consumed 70 units C) $10 and the quantity consumed 60 units D) $12 and the quantity consumed 50 units Refer to the graph above, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If an import quota of 40 units were imposed on the product, then the equilibrium price would be:


A) $6 and the quantity consumed 80 units
B) $8 and the quantity consumed 70 units
C) $10 and the quantity consumed 60 units
D) $12 and the quantity consumed 50 units

Correct Answer:

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