In the diagram in Question #8 above, suppose that country A, from this initial situation where its tariff is applied to both countries B and C, now forms a customs union with Country C. With the formation of this customs union, the amount of imports of good X into country A would be represented by the distance __________.

Question

Quizplus · Accepted Answer

When a customs union is formed, tariffs are removed between member countries, leading to an increase in imports from the member country (Country C in this case). The distance Q₁Q₆ represents the new level of imports from Country C after the customs union is formed.

In the Diagram in Question #8 Above, Suppose That Country