(Figure: U.S.Imports from Mexico and Asia) The graph illustrates
A customs union between the United States and Mexico.
According to the graph, under free trade the United States will
Import ________ units of the good from _______ at the price of
_______.
A)600; Mexico; $150
B)600; China; $250
C)350; China; $150
D)500; China; $250

Question

(Figure: U.S.Imports from Mexico and Asia) The graph illustrates
A customs union between the United States and Mexico.
According to the graph, under free trade the United States will
Import ________ units of the good from _______ at the price of
_______.
A)600; Mexico; $150 
B)600; China; $250 
C)350; China; $150 
D)500; China; $250

Quizplus · Accepted Answer

The graph shows that under free trade, the United States will import 350 units of the good from China at the price of $150. This can be seen by looking at the intersection point of the supply and demand curves for imports from China. The graph does not show any information about a customs union between the United States and Mexico. Option A is incorrect because it shows a higher quantity and lower price than what the graph suggests for imports from Mexico. Option B is incorrect because it shows a higher price than what the graph suggests for imports from China. Option D is incorrect because it shows a higher quantity and higher price than what the graph suggests for imports from China.