Refer to the figure above. The graph represents automobile consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. Assume that this country imposes emissions restrictions on automobiles that changes domestic supply to S' and import supply to I'. The result of this emission policy is A) increase imports from (q₁ - q₂) to (q₀ - q₂). B) decrease imports from (q₁ - q₂) to (q₀ - q₂). C) increase imports from (q₀ - q₁) to (q₂ - q₁). D) decrease imports from (q₀ - q₁) to (q₂ - q₁).

Question

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The Answer of Refer to the figure above. The graph represents automobile consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. Assume that this country imposes emissions restrictions on automobiles that changes domestic supply to S' and import supply to I'. The result of this emission policy is A) increase imports from (q₁ - q₂) to (q₀ - q₂). B) decrease imports from (q₁ - q₂) to (q₀ - q₂). C) increase imports from (q₀ - q₁) to (q₂ - q₁). D) decrease imports from (q₀ - q₁) to (q₂ - q₁).

Refer to the Figure Above