Refer to the graphs shown. The market is caviar. Which graph best represents the impact of an increase in consumer incomes on the market for caviar?

Wage and price stickiness

A. creates a surplus or a shortage of real GDP. B. give rise to a vertical long-run aggregate supply curve. C. give rise to a vertical short-run aggregate supply curve. D. prevents the economy from producing its potential level of real GDP.

Answer the following statements true (T) or false (F)

1. Import tariffs benefit the consumers of the product involved. 2. If demand for a product is increasing, an import tariff is less restrictive than an import quota. 3. Export subsidies tend to hurt domestic consumers and benefit the foreign consumers. 4. A voluntary export restraint (VER) is similar to an import quota; except that the former benefits the foreign producers while the latter benefits the domestic producers. 5. Trade protection in most instances transfers wealth from consumers to domestic producers.