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, 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
Correct Answer:

Verified
Correct Answer:
Verified
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