The Following Graph Shows the Supply of and Demand for Baseballs

question 150

Multiple Choice

The following graph shows the supply of and demand for baseballs in the United States.If the world price is $3 per baseball and a tariff of $1 per baseball is imposed,then the number of baseballs imported is _____.

• A)4,000
• B)6,000
• C)8,000
• D)10,000
• E)12,000

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Definitions:

Profit

The financial gain achieved when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Wage

Payment to a worker from an employer for labor or services, usually expressed as an hourly, daily, or piece rate.

Marginal Revenue

The change in total revenue from an additional unit sold.

Marginal Cost

The cost of producing one additional unit of a good or service, important in decision-making processes about production levels.