Refer to the Information Provided in Figure 4

question 158

Multiple Choice

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer 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 quantity of apples demanded will be reduced by 2 million apples per day.
• B) the quantity of apples supplied by U.S. firms will increase by 2 million apples per day.
• C) the price of apples in the United States will increase to 40 cents per apple.
• D) all of the above

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