Refer to the information provided in Figure 19.3 below to answer the questions that follow.
Figure 19.3
-Refer to Figure 19.3.The domestic price of shoes is $80.After trade the price of a pair of shoes is $60.After trade this country will import

Question

Refer to the information provided in Figure 19.3 below to answer the questions that follow.
  Figure 19.3
-Refer to Figure 19.3.The domestic price of shoes is $80.After trade the price of a pair of shoes is $60.After trade this country will import

Quizplus · Accepted Answer

The domestic price of shoes is $80, which is higher than the world price of $60. Therefore, the country will import shoes. The quantity of shoes demanded at the lower price of $60 will be Qd2, and the quantity supplied by domestic producers at the lower price of $60 will be Qs1. The difference between Qd2 (300) and Qs1 (0) is the quantity of shoes that the country will import, which is 300 pairs. Therefore, the correct answer is C.

Refer to the Information Provided in Figure 19