Restrictions on the importation of tomatoes reduce the supply ...

[naturalchemist]

Restrictions on the importation of tomatoes reduce the supply available to the U.S. domestic market. Studies indicate that the demand for tomatoes is elastic. Compared to a free-trade situation, the import restrictions cause
 a. higher tomato prices and an increase in consumer expenditures on tomatoes in the United States.
  b. lower tomato prices and an increase in consumer expenditure on tomatoes in the United States.
  c. lower tomato prices and a reduction in consumer expenditure on tomatoes in the United States.
  d. higher tomato prices and a reduction in consumer expenditure on tomatoes in the United States.

Question 2

Differentiate between a public good and a common resource good.

[kristenb95]

Answer to Question 1

d

Answer to Question 2

A public good is neither rival nor excludable. It is not rival because everyone can consume the good simultaneously. It is not excludable because once the good is produced, it is prohibitively costly to exclude anyone from consuming the good. On the other hand, a common resource is a rival good that is nonexcludable; that is, nonpayers cannot be easily excluded from consuming the good, and when one unit is consumed by one person, it means that it cannot be consumed by another.

[naturalchemist]

TYSM

[kswal303]

Thanks for the timely response, appreciate it