Refer to the figure below to answer the following questions.

The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ Canada's imports of shirts by ________ million shirts per year.
A)decreases; 16
B)decreases; 8
C)increases; 8
D)increases; 4
E)increases; 16

Question

Refer to the figure below to answer the following questions.
  
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ Canada's imports of shirts by ________ million shirts per year.
A)decreases; 16 
B)decreases; 8 
C)increases; 8 
D)increases; 4 
E)increases; 16

Quizplus · Accepted Answer

The tariff decreases Canada's imports of shirts by 8 million shirts per year.

Refer to the Figure Below to Answer the Following Questions