Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:

An import quota will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare

A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on

List the factors that influence supply. How does a change in each of the factors you have listed affect the supply curve?

What will be an ideal response?