Multiple Choice
(Table: Demand and Supply for Gloves) The United States can also
Import gloves from China at $4 per pair and from Mexico at $5 per
Pair.Currently, the United States imposes a specific tariff of $2 on its
Glove imports.Suppose that the United States and Mexico form a free
Trade area.How much trade in gloves is created?
A) zero pairs of gloves
B) 6 pairs of gloves
C) 2 pairs of gloves
D) 4 pairs of gloves
Correct Answer:

Verified
Correct Answer:
Verified
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