Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. If the United States eliminates all tariffs on CD-Rom drives, which of the following would occur?
A. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives.
B. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 3 million CD-Rom drives.
C. The price of CD-Rom drives in the United States would be $25 per CD-Rom drive, and the United States would import 3 million CD-Rom drives.
D. The price of CD-Rom drives in the United States after the U.S. government eliminated all tariffs on imported CD-Rom drives cannot be determined from this information.
Answer: A
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A) lead to a movement along the firm's demand for labor curve. B) lead to more employment in the competitive firm. C) not impact the hiring of labor. D) make the demand for labor more inelastic.
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