Refer to Figure 4.1. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.

A) 10 cents
B) 20 cents
C) 30 cents
D) 40 cents

Free Trade

An economic policy that allows imports and exports between countries with minimal government interference or tariffs.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price during a particular period.

United States

A country in North America consisting of 50 states and a federal district, characterized by a diverse geography and culture.