In the above figure, at an output level of Q1, total variable cost is

A negative supply shock often results in:

a) a leftward shift of the AD curve. b) an increase in the aggregate price level and a decrease in aggregate output. c) no change in the price level. d) a drop in the unemployment levels.

Based on Figure 6.1, suppose the government puts a tariff of $0.25 per bushel on soybean imports. How much will the tariff reduce imports?

A) Imports will decrease by 10 million bushels. B) Imports will decrease by 20 million bushels. C) Imports will decrease by 60 million bushels. D) Imports will not change after the tariff.