Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4
-Refer to Figure 4.4. If a $25 per barrel tariff is levied on imported oil, the United States will
A) import 2 million barrels of oil per day.
B) import 6 million barrels of oil per day.
C) import 10 million barrels of oil per day.
D) export 10 million barrels of oil per day.

Question

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.  Figure 4.4
-Refer to Figure 4.4. If a $25 per barrel tariff is levied on imported oil, the United States will
A) import 2 million barrels of oil per day. 
B) import 6 million barrels of oil per day. 
C) import 10 million barrels of oil per day. 
D) export 10 million barrels of oil per day.

Quizplus · Accepted Answer

The tariff will increase the price of imported oil, making it more expensive for US consumers. As a result, US consumers will demand less imported oil, and the US will import less oil.

Refer to the Information Provided in Figure 4