-Refer to Exhibit 34-7.The world price of good X is $15.Under a policy of free trade,U.S.consumers will import ___________ units of X from abroad.
A) 50
B) 45
C) 40
D) 30

Question

-Refer to Exhibit 34-7.The world price of good X is $15.Under a policy of free trade,U.S.consumers will import ___________ units of X from abroad.
A) 50 
B) 45 
C) 40 
D) 30

Quizplus · Accepted Answer

The correct answer is A.At a world price of $15, the quantity demanded by U.S. consumers is 60 units, and the quantity supplied by U.S. producers is 15 units. Therefore, the U.S. will import 60 - 15 = 45 units of X from abroad.