Refer to the information provided in Figure 20.4 below to answer the question(s) that follow. Figure 20.4
-Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, this country will import ________ leather wallets.
A) 50
B) 100
C) 150
D) 200

Question

Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.  Figure 20.4
-Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, this country will import ________ leather wallets.
A) 50 
B) 100 
C) 150 
D) 200

Quizplus · Accepted Answer

With the tariff, the price of a leather wallet is $15. The country will import the difference between the quantity demanded and the quantity supplied at this price. Assuming the demand and supply curves intersect at 100 units at $15, the country will import 100 leather wallets.

Refer to the Information Provided in Figure 20