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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 d = 300

The market for USB flash drives in Country C is perfectly competitive and is in equilibrium.
Domestic demand is given by Qd = 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 MTrf flash drives.


What is MFree and MTrf?

Question 1 options:

1)

MFree = 220 units, MTrf = 60 units

2)

MFree = 180 units, MTrf = 140 units

3)

MFree = 140 units, MTrf = 60 units

4)

MFree = 180 units, MTrf = 60 units

5)

MFree = 220 units, MTrf = 140 units

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