Use the following to answer questions:
Figure: Foreign Trade with a Tariff
-(Figure: Foreign Trade with a Tariff) Refer to the figure. A $1 tariff results in:
A) an increase in imports of 80 million units.
B) a decrease in imports of 80 million units.
C) an increase in imports of 100 million units.
D) a decrease in imports of 100 million units.

Question

Use the following to answer questions:
Figure: Foreign Trade with a Tariff 
-(Figure: Foreign Trade with a Tariff) Refer to the figure. A $1 tariff results in:
A) an increase in imports of 80 million units. 
B) a decrease in imports of 80 million units. 
C) an increase in imports of 100 million units. 
D) a decrease in imports of 100 million units.

Quizplus · Accepted Answer

The figure shows that with a tariff of $1, the quantity of imports decreases from 320 million units to 240 million units. This means that there is a decrease in imports of 80 million units. Therefore, option B is the correct choice.

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