This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How does a quota affect the domestic price of the import, the domestic consumption, the domestic ... (Read 276 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
on: Jun 29, 2018
How does a quota affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?
 
  What will be an ideal response?

Question 2

Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if several firms exit the industry in the long run?
 
  A) The demand curve by existing firms will become perfectly inelastic.
  B) The demand curve by existing firms will become perfectly elastic.
  C) The demand faced by existing firms will increase.
  D) The demand faced by existing firms will decrease.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

A quota raises the price of the good because it decreases the amount that can be imported. As a result, domestic consumption decreases as domestic consumers decrease the quantity they demand. And, also as a result, domestic production increases as domestic producers increase the quantity they supply.

Answer to Question 2

C


Beheh

  • Member
  • Posts: 520
Reply 2 on: Jun 29, 2018
:D TYSM

Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Two mechanisms that affect cell shape and movement. Two mechanisms that affect cell shape and movement.
The wildcat Felis silvestris is a close relative and possible ancestor of the domestic cat. The wildcat Felis silvestris is a close relative and possible ancestor of the domestic cat.
Lilly Martin Spenser’s painting, Domestic Happiness (1844), reflects the change in attitudes toward Lilly Martin Spenser’s painting, Domestic Happiness (1844), reflects the change in attitudes toward
Diet Soda's Consumption's Association with Increased (not Decreased) Prevalence of ... Diet Soda's Consumption's Association with Increased (not Decreased) Prevalence of ...
U.S. Energy Consumption U.S. Energy Consumption
Global energy consumption is rising rapidly Global energy consumption is rising rapidly
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library