Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. With the tariff domestic production is

A) 100.
B) 150.
C) 200.
D) 300.

Domestic Production

The manufacture of goods within a country’s borders as opposed to importing goods from other countries.

Domestic Price

The price of goods or services within a country's borders, differing from global or international prices due to factors like tariffs, taxes, and demand-supply dynamics in the local market.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade.