Exhibit 33-7

-Refer to Exhibit 33-7. The world price of good X is $15. Under a policy of free trade, U.S. consumers will import ___________ units of X from abroad.

Question

Exhibit 33-7
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-Refer to Exhibit 33-7. The world price of good X is $15. Under a policy of free trade, U.S. consumers will import ___________ units of X from abroad.

Quizplus · Accepted Answer

The correct answer is A because the world price of good X is $15, and the U.S. domestic price of good X is $20. Therefore, U.S. consumers will import 50 units of X from abroad.

Exhibit 33-7 ​

Exhibit 33-7