The market for USB flash drives in Country C is perfectly competitive and is in equilibrium.

Domestic demand is given by Q^d = 300 - 4P and domestic supply is given by Q^s = 2P.

The world price for flash drives is $20.

The government of country Cimposes a tariff of $20 on all imported flash drives.

Before the tariff was imposed, country C imported M_Free flash drives.

After the tariff is imposed, country C now imports M_Trf flash drives.

What is M_Free and M_Trf?

Question 1 options:

1)

M_Free = 220 units, M_Trf = 60 units

2)

M_Free = 180 units, M_Trf = 140 units

3)

M_Free = 140 units, M_Trf = 60 units

4)

M_Free = 180 units, M_Trf = 60 units

5)

M_Free = 220 units, M_Trf = 140 units