The effect of an import quota is

A) to shift the supply curve up by the amount of the quota.
B) to lead to a decrease in demand.
C) to make the supply curve vertical at the amount of the quota.
D) to make the supply curve horizontal at the amount of the quota.


C

Economics

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In autarky, when a community maximizes its standard of living, its consumption point is

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A) consumers lobbying for export tariffs. B) consumers lobbying for import tariffs. C) consumers lobbying for lower import tariffs. D) producers lobbying for export tariffs. E) producers lobbying for import tariffs.

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Suppose that Figure 10.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, it will produce a quantity of ________ and charge a price of ________.

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