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. With free trade domestic consumption is
A) 0.
B) 100.
C) 150.
D) 300.

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. With free trade domestic consumption is
A) 0. 
B) 100. 
C) 150. 
D) 300.

Quizplus · Accepted Answer

With free trade, the price of a leather wallet is $10, which is lower than the domestic price of $20. This lower price increases domestic consumption to 300 units.

Refer to the Information Provided in Figure 20