Refer to the information provided in Figure 33.4 below to answer the question(s) that follow. Figure 33.4
-Refer to Figure 33.4. 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. If there is free trade, this country will ________ 200 leather wallets.
A) buy
B) sell
C) import
D) export

Question

Refer to the information provided in Figure 33.4 below to answer the question(s) that follow.  Figure 33.4
-Refer to Figure 33.4. 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. If there is free trade, this country will ________ 200 leather wallets.
A) buy 
B) sell 
C) import 
D) export

Quizplus · Accepted Answer

With free trade, the price of a leather wallet is $10, which is lower than the domestic price of $20. Therefore, the country will import 200 leather wallets.

Refer to the Information Provided in Figure 33