part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply.
part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply.
Chapter19: International Trade
Section: Chapter Questions
Problem 2.5P
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part a
The effect of a tariff on the quantity demanded of an imported commodity:
a will be higher the greater the elasticity of its demand .
b will be lower the greater the elasticity of its demand.
c does not depend on its elasticity of demand .
d will only depend on its elasticity of supply.
part b:
In a market supplied by both domestic and foreign producers the government establishes a quota on imports at a level below current imports. The quantity sold by domestic producers will ______________ and the equilibrium quantity in the market overall will ______________.
a not change; not change
b increase; decrease
c decrease; decrease
d decrease; not change
Part C: The picture attached
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