The Figure Shows the Market for Shirts in the United

question 77

Multiple Choice

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts of $4 per shirt.
-In the figure above, with the tariff Americans buy ________ million shirts per year.

• A) 40
• B) 48
• C) 32
• D) 16

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Definitions:

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly in response to changes in its price.

Time Period

A specific duration or span of time during which certain events or processes occur or are evaluated.

Elasticity Of Supply

An assessment of the extent to which the supply of a product varies following a price alteration.

Time To Adjust

This term refers to the period required for changes in economic or policy conditions to take effect in the market or economy.