2025HSCMultiple choice
Q17
1 mark
Question
The graph shows the effect of a quota on imported machinery in the domestic market, with the initial equilibrium at X.
The government chooses to reduce, but not eliminate, the quota.
From the prices shown on the graph, which is the most likely new price of machinery?
A. P1
B. P2
C. P3
D. P4
Syllabus alignment
The Global Economy
- Globalisation and tradeInvestigate globalisation, trade, protection, international organisations and economic development.