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 be the quantity demanded?

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 be the quantity demanded?

Quizplus · Accepted Answer

When imports are allowed, the domestic price will decrease to the world price, leading to an increase in quantity demanded to Q₂.

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