his Question: 1 pt 17 of 22 (15 complete) s it possible that an outright ban on

Question

his Question: 1 pt 17 of 22 (15 complete) s it possible that an outright ban on foreign imports will have no effect on the equilibrium price? (Hint Suppose that imports occur only at relatively high prices.) An import ban O A. would have no effect if the world price were less than the equilibrium price B. would have an effect if imports were positive at the equilibrium price. O C. would have no effect if domestic supply were zero at the equilibrium price O D. would have an offect if domestic demand were positive at the equilibrium price. would have an effect if the world price were equal to the domestic price. Click to select your answer

Explanation / Answer

Option E

When the domestic price and world price are equal, an import ban would have no effect on imports as they are not relatively cheaper than domestic goods.

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