The above figure shows the U.S. market for replacement cell phone batteries.
- With free trade, U.S. production is equal to batteries per year. When a $2 tariff is in place, U.S. production is equal to_______ batteries per year.When a $2 tariff is in place, U.S. production is equal to __________ batteries per year.
A) 100,000; 300,000
B) 100,000; 500,000
C) 900,000; 700,000
D) 300,000; 500,000
E) 300,000; 100,000
Correct Answer:
Verified
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