Figure 19-4
Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

Question

Figure 19-4
  Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will the market price be?

Quizplus · Accepted Answer

Allowing imports of leather footwear would shift the supply curve to the right, causing the equilibrium price to decrease. In this case, the new equilibrium price would be at the intersection of the original demand curve and the new supply curve, which is around $24.

Figure 19-4 Figure 19-4 Shows the U.S. Demand and Supply