Refer to the information provided in Figure 19.4 below to answer the questions that follow.
Figure 19.4
-Refer to Figure 19.4.The domestic price of a leather wallet is $20.With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15.With the tariff domestic production is

Question

Refer to the information provided in Figure 19.4 below to answer the questions that follow.
  Figure 19.4
-Refer to Figure 19.4.The domestic price of a leather wallet is $20.With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15.With the tariff domestic production is

Quizplus · Accepted Answer

With the tariff, the price of a leather wallet is $15, which is higher than the free trade price but lower than the domestic price without trade. This price encourages some domestic production, and according to the figure, domestic production at this price level is 150 units.

Refer to the Information Provided in Figure 19