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 be the quantity demanded?
A)Q0
B)Q1
C)Q2
D)Q2 - Q0

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 be the quantity demanded?
A)Q0 
B)Q1 
C)Q2 
D)Q2 - Q0

Quizplus · Accepted Answer

When imports are allowed, the domestic price will decrease to the world price, leading to an increase in quantity demanded to Q2.

Figure 7-1 Figure 7-1 Shows the U