Applied Economics Test: Midterm 2 Refer to the information provided in the figures to answer the question that follows. World Market U.S. Market 225- Sworld Su.S. 200- 175- 150- Price ($ Price ($ 125 125- 100- Dworld 0 2 4 6 8 10 12 14 Millions of barrels of oil per day Millions of barrels of oil per day Assume that initially there is free trade. If the United States then imposes a $25 tariff per barrel of imported oil, O A. the quantity of oil demanded will be reduced by 4 million barrels per day. O B. U.S. imports of oil will increase by 4 million barrels per day. OC. the price of oil in the United States will increase to $150 per barrel. O D. the quantity of oil supplied by U.S. firms will increase by 8 million barrels per day