Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.
A) 10 cents
B) 20 cents
C) 30 cents
D) 40 cents

Question

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.  Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.
A) 10 cents 
B) 20 cents 
C) 30 cents 
D) 40 cents

Quizplus · Accepted Answer

The correct answer is A because the slope of the demand curve is -2 million apples per day per 10 cents tax.

Refer to the Information Provided in Figure 4