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The graph illustrates a customs union between the United States and Mexico. The United States does not produce the product shown in the graph. Imports
The graph illustrates a customs union between the United States and Mexico. The United States does not produce the product shown in the graph. Imports satisfy its domestic demand (designated by Mus). The curves Smex and Sasia describe Mexican and Asian supplies. With a free-trade price of $150, how many units each will the United States import from Mexico and from Asia? Price Smex + t ....................................................foo...... Smex .......... S mex $250 Sasia + t $150 Sasia Mus 250 400 500 600 Import quantity O 300 from each country O 250 from Mexico and 350 from Asia O 350 from Mexico and 250 from Asia O 250 from Mexico and 600 from Asia
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