Author Question: When the United States imposes an import quota on a good, the amount of the ________ in U.S. ... (Read 222 times)

big1devin · **on:** Jun 29, 2018

When the United States imposes an import quota on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.

A) increase; smaller than; increase
B) decrease; larger than; decrease
C) decrease; larger than; increase
D) decrease; equal to; increase

Question 2

The above figure shows the demand curve for movie rentals from Redbox. If Redbox lowered its price from 4.00 to 3.50, then total revenue would ________ because demand is ________.

A) decrease; elastic
B) increase; elastic
C) decrease; inelastic
D) increase; inelastic