Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Suppose the government allows imports of leather footwear into the United States.What will the market price be?
A) $24
B)$24
C)$30
D)$54

Question

Figure 7-1  Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Suppose the government allows imports of leather footwear into the United States.What will the market price be?
A)> $24 
B)$24 
C)$30 
D)$54

Quizplus · Accepted Answer

With the introduction of imports, the supply curve shifts to the right, causing the equilibrium price to decrease. The new equilibrium price will be at the intersection of the new supply curve (S') and the original demand curve (D), which is at $24.

Figure 7-1 Figure 7-1 Shows the U