The domestic demand and supply for sugar are Qd = 40,000 ? 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. Suppose an import quota of 5,000 is imposed in the domestic market. What will be the new market price of sugar?
A. 30
B. 40
C. 20
D. 50
Answer: D
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