Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,

A) the quantity of apples demanded will be reduced by 4 million apples per day.
B) the quantity of apples supplied by U.S. firms will increase by 6 million apples per day.
C) the price of apples in the United States will increase to 40 cents per apple.
D) U.S. imports of apples will increase by 6 million per day.

Free Trade

The unrestricted buying and selling of goods and services between countries without the imposition of constraints such as tariffs, duties, and quotas.

Quantity Demanded

The quantity of a product or service that buyers are prepared and capable of buying at a specific price.

United States

The United States is a country primarily located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.