Multiple Choice
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow. Figure 4.5
-Refer to Figure 4.5. If the United States eliminates all tariffs on CD-Rom drives, which of the following would occur?
A) The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 3 million CD-Rom drives.
B) The price of CD-Rom drives in the United States would be $25 per CD-Rom drive, and the United States would import 3 million CD-Rom drives.
C) The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives.
D) The price of CD-Rom drives in the United States after the U.S. government eliminated all tariffs on imported CD-Rom drives cannot be determined from this information.
Correct Answer:

Verified
Correct Answer:
Verified
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Q4: The government imposes a price floor on
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Q11: The price system ultimately determines the allocation