Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,
A. the price of apples in the United States will increase to 40 cents per apple.
B. the quantity of apples demanded will be reduced by 2 million apples per day.
C. the quantity of apples supplied by U.S. firms will increase by 2 million apples per day.
D. all of the above
Answer: D
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