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 domestic quantity supplied?

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 domestic quantity supplied?

Quizplus · Accepted Answer

With the introduction of imports, the domestic quantity supplied will decrease from 20 units to 10 units (point B to point C) due to the increase in competition from foreign producers.

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