Multiple Choice
Refer to the figure below to answer the following questions.
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ Canada's imports of shirts by ________ million shirts per year.
A) decreases; 16
B) decreases; 8
C) increases; 8
D) increases; 4
E) increases; 16
Correct Answer:

Verified
Correct Answer:
Verified
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