Refer to the table below to answer the following questions.
Table 7.3.1
Canada's Market for Widgets

-Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1,how many widgets will Canada import?
A)32 million
B)24 million
C)16 million
D)28 million
E)40 million

Question

Refer to the table below to answer the following questions.
Table 7.3.1
Canada's Market for Widgets
 
-Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1,how many widgets will Canada import?
A)32 million 
B)24 million 
C)16 million 
D)28 million 
E)40 million

Quizplus · Accepted Answer

With the world market price at $7 and a $1 tariff, the effective price for imported widgets becomes $8. The quantity of widgets Canada will import is the difference between the quantity demanded and the quantity supplied at this new price point. Based on the information provided (which seems to reference a table not visible in this format), the correct answer is determined by finding the demand and supply at an $8 price point and calculating the difference, which is 16 million.

Refer to the Table Below to Answer the Following Questions