Refer to Figure 35.5. If S1 represents the U.S. domestic supply of a good and S2 represents supply in the United States under conditions of free trade, what does S3 most likely represent?

A. U.S. supply under quota-restricted trade.
B. Production possibilities under conditions of free trade.
C.  U.S. supply under tariff-restricted trade.
D. The result of a foreign country dumping this good on the U.S. market.

ANSWER:

C.  U.S. supply under tariff-restricted trade.