Question

question 2 (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.
imports 32
exports 32
exports 16
imports 48

Explanation:

Step1: Find quantity demanded at world - price

At a world price of $20 per shirt, we look at the demand curve D. When the price is $20, the quantity demanded from the demand curve is 48 million shirts per year.

Step2: Find quantity supplied at world - price

At a world price of $20 per shirt, we look at the supply curve S. When the price is $20, the quantity supplied from the supply curve is 16 million shirts per year.

Step3: Calculate imports

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

Answer:

imports 32