Assume that the United States imports laptops from South Korea at a price of $200 per unit and that these laptops are subject to an import tariff of 20 percent.Also assume that U.S.components are used in the laptops assembled by South Korea and that these components have a value of $100.Under the Offshore Assembly Provision of U.S.tariff policy, the price of an imported laptop to the U.S.consumer after the tariff has been levied is $220.

Question

Quizplus · Accepted Answer

The question does not correspond to the given diagram of the market for gasoline in a small nation. It is a separate question about import tariffs and the offshore assembly provision. As per the given information, the laptop price after the tariff is $220, which is a 20% increase from the original price of $200. Therefore, the answer is A)True.

Assume That the United States Imports Laptops from South Korea