Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5
-Refer to Figure 4.5. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tax per CD-Rom drive on imported CD-Rom drives.
A) no
B) a $10
C) a $15
D) a $25

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. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tax per CD-Rom drive on imported CD-Rom drives.
A) no 
B) a $10 
C) a $15 
D) a $25

Quizplus · Accepted Answer

A tax on imported CD-Rom drives would increase the price for consumers, leading to a decrease in quantity demanded. The specific impact of a $10 tax aligns with the information provided, assuming it matches the economic model or data referenced in Figure 4.5, which is not visible in this format.

Refer to the Information Provided in Figure 4