Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Suppose the government allows imports of leather footwear into the United States.What will be the quantity demanded?

Question

Figure 7-1  Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Suppose the government allows imports of leather footwear into the United States.What will be the quantity demanded?

Quizplus · Accepted Answer

Allowing imports would shift the supply curve to the right, resulting in a new equilibrium point with a greater quantity demanded. Looking at the graph, the new equilibrium would be at a quantity of 12, corresponding to point U1B0 on the supply curve and point S1U1B12 on the demand curve.

Figure 7-1 Figure 7-1 Shows the U