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The market for USB flash drives in Country C is perfectly competitive and is in equilibrium. Domestic demand is given by Q = 300 -
The market for USB flash drives in Country C is perfectly competitive and is in equilibrium. Domestic demand is given by Q = 300 - 4P and domestic supply is given by Qs = 2P. The world price for flash drives is $20. The government of country C imposes a tariff of $20 on all imported flash drives. Before the tariff was imposed, country C imported MFree flash drives. After the tariff is imposed, country C now imports MT, flash drives. What is MFree and MTH? Question 1 options: " 1) MFree = 220 units, MT# = 60 units " 2) MFree = 180 units, MTH = 140 units " 3) Merge = 140 units, MTH = 60 units " 4) Merge = 180 units, MTH = 60 units " 5) MFree = 220 units, MTH = 140 units
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