Figure 9-1

Figure 9-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-1.Suppose the government allows imports of leather footwear into the United States.What will be the quantity demanded?

Question

Figure 9-1
  
Figure 9-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 9-1.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 quantity demanded will increase to the level where the domestic price equals the world price, which is typically higher than the domestic equilibrium quantity.

Figure 9-1 Figure 9-1 Shows the U.S. Demand and Supply for Leather