Figure 19-1
Figure 19-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-1.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

Question

Figure 19-1
  Figure 19-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-1.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

Quizplus · Accepted Answer

With the introduction of imports, the supply curve shifts to the right, causing a decrease in the market price. At the intersection of the new supply curve with the original demand curve, the price is approximately $18.

Figure 19-1 Figure 19-1 Shows the U.S. Demand and Supply