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Exhibit 30-2 -The Government Is Considering Imposing Either a Tariff That Will

Question 20

Multiple Choice

Exhibit 30-2 Exhibit 30-2 -The government is considering imposing either a tariff that will restrict export supply according to the data in Exhibit 30-2 or a quota that limits imports to 8 units. Which of the following is true? A) Consumers will prefer the quota. B) The government will collect more revenue with the quota. C) Producers will prefer the quota. D) The equilibrium price will be lower with the quota. E) Imports will be higher with the quota.
-The government is considering imposing either a tariff that will restrict export supply according to the data in Exhibit 30-2 or a quota that limits imports to 8 units. Which of the following is true?


A) Consumers will prefer the quota.
B) The government will collect more revenue with the quota.
C) Producers will prefer the quota.
D) The equilibrium price will be lower with the quota.
E) Imports will be higher with the quota.

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