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Figure 9-1 Figure 9-1 Shows the U

Question 75

Multiple Choice

Figure 9-1 Figure 9-1   Figure 9-1 shows the U.S.demand and supply for leather footwear. -Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What happens to the market price and what is the quantity of imports? A) The price equals $24 and imports equal Q<sub>2</sub> units. B) The price falls to $24 and imports equal Q<sub>2</sub> - Q<sub>1</sub> units. C) The price falls to $24 and imports equal Q<sub>1</sub> - Q<sub>0</sub> units. D) The price equals $24 and imports equals Q<sub>2</sub> - Q<sub>0</sub> units. Figure 9-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What happens to the market price and what is the quantity of imports?


A) The price equals $24 and imports equal Q2 units.
B) The price falls to $24 and imports equal Q2 - Q1 units.
C) The price falls to $24 and imports equal Q1 - Q0 units.
D) The price equals $24 and imports equals Q2 - Q0 units.

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