-Refer to Exhibit 34-7.Assume that the current price of good X is $25 (which includes a $10 tariff on imports of good X).Americans purchase ______ units of good X from U.S.producers and import _______ units of good X from abroad.
A) 0; 50
B) 20; 25
C) 10; 30
D) 10; 40

Question

-Refer to Exhibit 34-7.Assume that the current price of good X is $25 (which includes a $10 tariff on imports of good X).Americans purchase ______ units of good X from U.S.producers and import _______ units of good X from abroad.
A) 0; 50 
B) 20; 25 
C) 10; 30 
D) 10; 40

Quizplus · Accepted Answer

At a price of $25, which includes a $10 tariff, the quantity demanded is 40 units (from the demand curve), and the quantity supplied by U.S. producers is 10 units (from the supply curve). Therefore, Americans purchase 10 units from U.S. producers and import the difference between total demand and domestic supply, which is 30 units (40 - 10 = 30).