(Table: Demand and Supply for Gloves) the United States Can

question 110

Multiple Choice

(Table: Demand and Supply for Gloves) The United States can also
Import gloves from China at $4 per pair and from Mexico at $5 per
Pair.Currently, the United States imposes a specific tariff of $2 on its
Glove imports.Suppose that the United States and Mexico form a free­
Trade area.How much trade in gloves is created?

• A)zero pairs of gloves
• B)6 pairs of gloves
• C)2 pairs of gloves
• D)4 pairs of gloves