Suppose Initially There Is No Customs Union and That the $100

Multiple Choice

Suppose initially there is no customs union and that the $100
Tariff is imposed by the United States.Now, Mexico invests in
Productive technology and it shifts the Mexican supply curve to
SMex.The United States now forms a customs union with Mexico.
This will result in a price of _______ and imports of _______.

A) $250; 500
B) $250; 400
C) $150; 600
D) $150; 500