Refer to the information provided in Figure 4.5 below to answer the question(s) that follow. Figure 4.5
-Refer to Figure 4.5. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tariff per CD-Rom drive on imported CD-Rom drives.
A) no
B) a $10
C) a $15
D) a $25

Question

Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.  Figure 4.5
-Refer to Figure 4.5. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tariff per CD-Rom drive on imported CD-Rom drives.
A) no 
B) a $10 
C) a $15 
D) a $25

Quizplus · Accepted Answer

A $10 tariff per CD-Rom drive would reduce the quantity demanded of imported CD-Rom drives by 3 million, as it would increase the price of imported drives, making them less attractive compared to domestically produced ones or leading consumers to reduce their overall consumption of CD-Rom drives.

Refer to the Information Provided in Figure 4