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 be the domestic quantity supplied?

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 be the domestic quantity supplied?

Quizplus · Accepted Answer

With the introduction of imports, the domestic producers will face competition from foreign producers, leading to a decrease in the domestic quantity supplied. In this case, the domestic quantity supplied reduces from 20 units to 10 units. Therefore, the correct answer is B.

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