(Table: U.S. Demand for and Supply of Widgets) The United States can import widgets from China at $4 each and from Mexico at $5 each. The United States imposes a tariff of $2 on each of its widget imports. Suppose that the United States and Mexico form a free-trade area. How much trade in widgets is created? 
A) 0 widgets
B) 2 widgets
C) 4 widgets
D) 6 widgets
Correct Answer:
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Q77: (Figure: U.S. Imports from Mexico and Asia)
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