Refer to the information provided in Figure 18.3 below to answer the questions that follow. Figure 18.3
-Refer to Figure 18.3. 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 18.3 below to answer the questions that follow.  Figure 18.3
-Refer to Figure 18.3. 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

With the domestic price of shoes at $80 and the world price of shoes at $60, this country will import as long as domestic producers cannot compete with the lower world price. The quantity of imports will be the difference between the domestic quantity demanded at the lower world price (point B) and the domestic quantity supplied at the higher domestic price (point A). This is shown as the vertical distance between points A and B. The difference is 300 pairs of shoes. Therefore, the answer is C) 300 pairs of shoes.

Refer to the Information Provided in Figure 18