Refer to the Information Provided in Figure 4

question 82

Multiple Choice

Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5
-Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tax per CD-Rom drive on imported CD-Rom drives,

• A) the quantity of CD-Rom drives demanded will be reduced by 3 million.
• B) the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million.
• C) the price of CD-Rom drives in the United States will increase to $25.
• D) all of the above