The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above, with the tariff the United States imports _________million shirts per year.

Question

Quizplus · Accepted Answer

The correct answer is 16 million shirts per year. With the tariff, the quantity of imports is determined by the difference between the quantity demanded and the quantity supplied domestically at the tariff price.

The Figure Shows the Market for Shirts in the United