The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose that the United States imposes a tariff of $80 per barrel on imported wine. How many barrels of wine will the United States import and who will they import from?
A. 22 million barrels from France
B. 10 million barrels from France
C. 15 million barrels from Chile
D. 10 million barrels from Chile
Answer: B
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