Use the following to answer questions:
Figure: Costs of Tariffs
-(Figure: Costs of Tariffs) Refer to the figure. In the figure representing the market for leather, what price would consumers pay for leather in the absence of a tariff or other import restrictions?
A) a price less than $50
B) $50
C) a price somewhere between $50 and $100
D) $100

Question

Use the following to answer questions:
Figure: Costs of Tariffs 
-(Figure: Costs of Tariffs) Refer to the figure. In the figure representing the market for leather, what price would consumers pay for leather in the absence of a tariff or other import restrictions?
A) a price less than $50 
B) $50 
C) a price somewhere between $50 and $100 
D) $100

Quizplus · Accepted Answer

In the absence of a tariff or other import restrictions, the equilibrium price would be at $50 where the supply and demand curves intersect. At this price, the quantity demanded and quantity supplied would both be 80,000.

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