Refer to the figure below to answer the following questions.

The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.2.1
-Refer to Figure 31.2.1,with the tariff Canada imports ________ million shirts per year.

Question

Refer to the figure below to answer the following questions.
  
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.2.1
-Refer to Figure 31.2.1,with the tariff Canada imports ________ million shirts per year.

Quizplus · Accepted Answer

With the tariff of $4 per shirt, the new domestic price of imported shirts would be $24 per shirt. At this price, Canada would import 16 million shirts per year ($24 - $20 = $4 tariff, $4 tariff / $4 per shirt tariff = 1 million shirts, 20 million shirts - 4 million shirts = 16 million shirts).

Refer to the Figure Below to Answer the Following Questions