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The Figure Shows the Market for Shirts in the United

Question 20

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  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, the tariff ________ the domestic production of shirts in the United States by ________ per year. A)  increases; 8 million B)  decreases; 16 million C)  increases; 4 million D)  decreases; 8 million 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, the tariff ________ the domestic production of shirts in the United States by ________ per year.


A) increases; 8 million
B) decreases; 16 million
C) increases; 4 million
D) decreases; 8 million

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