Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.
Figure 20.4Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, domestic consumption of domestically produced wallets will be ________ wallets and domestic consumption of imported wallets will be ________ wallets.
A. 100; 250
B. 200; 50
C. 150; 100
D. 150; 250
Answer: C
You might also like to view...
The business cycle reflects both short-run fluctuations in output and long-run economic growth.
If a forecast is made using all available information, then economists say that the expectation formation is
A) rational. B) irrational. C) adaptive. D) reasonable.
If average fixed cost exceeds average variable cost at a particular level of output: a. Profits must be negative
b. That fact is meaningless for deciding the quantity of output to produce. c. Output levels are probably quite low relative to the designed capacity of the production facility. d. Both b and c. are likely true.
In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium
a. True b. False Indicate whether the statement is true or false