The Figure Given Below Shows the U

question 34

Multiple Choice

The figure given 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 the United States has a tariff of $80 per barrel on imported wine. Then, the U.S. joins a free trade area with Chile. Calculate the gain arising from an increase in net volume of trade after the U.S. joins the free trade area.

• A)$50 million
• B)$350 million
• C)$550 million
• D)$800 billion

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Definitions:

3 Months

A time period equivalent to roughly 12 weeks or about 90 days, often used to measure the early stages of development and change.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Attend

The act of being present at an event or location, such as a meeting or school, often implies participation or engagement in activities.

Own Bodies

The concept of recognizing and understanding one's physical self and the physiological functions associated with it.