-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The removal of the $100 per ton tariff would cause a(n)__________ in imports of __________ million tons.
A) increase; 5
B) increase; 10
C) increase; 15
D) decrease; 5
E) decrease; 10

Question

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The removal of the $100 per ton tariff would cause a(n)__________ in imports of __________ million tons.
A) increase; 5 
B) increase; 10 
C) increase; 15 
D) decrease; 5 
E) decrease; 10

Quizplus · Accepted Answer

The removal of the tariff would lower the price of sugar, making imports cheaper and more attractive, leading to an increase in imports. The specific increase mentioned in the options is 10 million tons.