What happens to the equilibrium price and quantity when a country sets a low or medium tariff or import quota? Group of answer choices The equilibrium price and quantity will be lower than with no trade. The equilibrium price and quantity will be somewhere between those that prevail with no trade and those with completely free trade. The equilibrium price and quantity will be the same as with no trade. The equilibrium price will be lower, and the quantity will be higher than the case with no trade.

What happens to the equilibrium price and quantity when a country sets a low or medium tariff or import quota? Group of answer choices The equilibrium price and quantity will be lower than with no trade. The equilibrium price and quantity will be somewhere between those that prevail with no trade and those with completely free trade. The equilibrium price and quantity will be the same as with no trade. The equilibrium price will be lower, and the quantity will be higher than the case with no trade.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter35: International Trade Restrictions

Section: Chapter Questions

Problem 3E

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What happens to the equilibrium price and quantity when a country sets a low or medium tariff or import quota?

Group of answer choices

The equilibrium price and quantity will be lower than with no trade.

The equilibrium price and quantity will be somewhere between those that prevail with no trade and those with completely free trade.

The equilibrium price and quantity will be the same as with no trade.

The equilibrium price will be lower, and the quantity will be higher than the case with no trade.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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