Use the following to answer questions :
Figure 18-5
-In Figure 18-5, what quota is equivalent to a $1 tariff?
A)0 units.
B)50 units.
C)100 units.
D)200 units.
E)None of the above.

Question

Use the following to answer questions :
Figure 18-5 
-In Figure 18-5, what quota is equivalent to a $1 tariff?
A)0 units. 
B)50 units. 
C)100 units. 
D)200 units. 
E)None of the above.

Quizplus · Accepted Answer

The quota that is equivalent to a $1 tariff is 50 units. This is because a $1 tariff will increase the price of the imported good by $1, which will reduce the quantity demanded by 50 units.

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