Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is
A. the same as that of a tariff of Pa?Pt.
B. the same as that of a tariff of Pt?Pc.
C. to raise price higher and lower consumption further than a tariff of Pt?Pc.
D. the same as that of a tariff of Pa?Pc.
Answer: B
Economics
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