Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

Countries X and Y make up a customs union, so tariffs are removed between the two countries. The diagram illustrates the effect on the wheat market in country X. What quantity of wheat is imported into country X from country Y before the customs union and after the customs union?

  • Aafter customs union: MN; before customs union: KL
  • Bafter customs union: KN; before customs union: KL
  • Cafter customs union: MN; before customs union: LM
  • Dafter customs union: KN; before customs union: LM

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