Refer to the graph shown. A quantity restriction of QR will:
A. create excess demand represented by Q2 ? QR.
B. reduce quantity supplied to Q2.
C. reduce quantity supplied to QR.
D. have no effect on quantity supplied.
Answer: C
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When external benefits are present,
A) competitive markets are efficient. B) competitive markets are inefficient. C) a tax is required to eliminate the inefficiency. D) property rights have already been established.
Current U.S. trade law allows for U.S. barriers against both fairly and unfairly traded foreign goods
Indicate whether the statement is true or false
Trade without serious income distribution effects is most likely to happen
A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing.
If an item has several good substitutes, the demand curve for that item is likely to be
A) relatively inelastic. B) relatively elastic. C) perfectly inelastic. D) unit elastic.