Asked by Aqualaquisha Lebron on Apr 27, 2024
Verified
Refer to Figure 4.5. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tariff per CD-Rom drive on imported CD-Rom drives.
A) no
B) a $10
C) a $15
D) a $25
CD-Rom Drives
Hardware devices used for reading data stored on CD-ROMs, which were once a common method for distributing software, multimedia applications, and large data files.
Tariffs
Taxes imposed by a government on imported goods and services, often used to protect domestic industries from foreign competition.
United States
A country located in North America, consisting of 50 states and a federal district, known for its significant influence on global economics, politics, and culture.
- Assess the influence of tariffs and trade measures on national market landscapes, including how they shape price trends, import volumes, and the provision and requisition of goods.
Verified Answer
JF
Jacob FloreyApr 27, 2024
Final Answer :
B
Explanation :
A $10 tariff per CD-Rom drive would reduce the quantity demanded of imported CD-Rom drives by 3 million, as it would increase the price of imported drives, making them less attractive compared to domestically produced ones or leading consumers to reduce their overall consumption of CD-Rom drives.
Learning Objectives
- Assess the influence of tariffs and trade measures on national market landscapes, including how they shape price trends, import volumes, and the provision and requisition of goods.