Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5
-Refer to Figure 4.5. If a $10.00 per CD-Rom drive tax is levied on imported CD-Rom drives, the United States will
A) import 3 million CD-Rom drives.
B) import 6 million CD-Rom drives.
C) import 9 million CD-Rom drives.
D) import 12 million CD-Rom drives.

Question

Refer to the information provided in Figure 4.5 below to answer the questions that follow.  Figure 4.5
-Refer to Figure 4.5. If a $10.00 per CD-Rom drive tax is levied on imported CD-Rom drives, the United States will
A) import 3 million CD-Rom drives. 
B) import 6 million CD-Rom drives. 
C) import 9 million CD-Rom drives. 
D) import 12 million CD-Rom drives.

Quizplus · Accepted Answer

A $10.00 tax on imported CD-Rom drives would increase the cost of imports, reducing the quantity imported to 3 million drives as per the supply and demand equilibrium shown in Figure 4.5.

Refer to the Information Provided in Figure 4