Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.
d. All of the above.
You might also like to view...
In 2012, all of fast-food chains expanded their hours of operation, with nearly 40% of all McDonald's restaurants being open 24 hours per day. This strategy was aimed at increasing sales because:
A) it was estimated that nearly one-fifth of all employed Americans worked primarily in the evening contributing to the demand for fast-food in late hours. B) it was estimated that consumers who shop at night tend to be more price sensitive. C) it was believed that longer hours of operation would lead to greater brand loyalty. D) none of the above.
Why is judging trends in economic indicators important to managers?
What will be an ideal response?
Robert, as a baker has to work long hours and doesn't get much time with his family. Robert's boss, in order to keep Robert working at the bakery would soon have to offer him a
a. positive compensating differential b. negative compensating differential c. nothing can make Robert stay d. none of the above
If B represents resource markets and C represents households, then the flow from B to C is _____
a. revenue. b. expenditures. c. labor, capital, and natural resources. d. income. e. wages, interest, rent, and profit. check image at top