Question

question 6 (0.125 points) the figure shows the market for shirts in the united states, where d is the u.s demand curve and s is the u.s. supply curve. the world price is $20 per shirt. in the figure above, with international trade the united states ______ million shirts per year. exports 16 imports 48 imports 32 exports 32

Explanation:

Step1: Find quantity supplied at world - price

At the world price of $20 per shirt, find the quantity supplied on the supply curve. Looking at the graph, when the price is $20, the quantity supplied by U.S. producers is 16 million shirts per year.

Step2: Find quantity demanded at world - price

At the world price of $20 per shirt, find the quantity demanded on the demand curve. From the graph, when the price is $20, the quantity demanded by U.S. consumers is 48 million shirts per year.

Step3: Calculate imports

Imports = Quantity demanded - Quantity supplied. So, imports = 48 - 16=32 million shirts per year.

Answer:

imports 32