Please give me the correct answer include the graph answer. Suppose the followin
ID: 1211304 • Letter: P
Question
Please give me the correct answer include the graph answer.
Suppose the following graph depicts the U.S. domestic market for towels. Assume that the United States only trades towels with China, and that China, with its comparative advantage in producing towels, charges the world price of $6 per towel. Throughout the question, assume that the amount demanded by any one country does not affect the world price of towels Notice that in the absence of trade with China, the equilibrium price of a towel is $12. At this price, both the domestic quantity demanded and the domestic quantity supplied equal 24 million towels. Use the graph to help you answer the following question:s PRICE (Dollars) 20 18 16 14 12 10 Domestic De Domestic Total Supply 24 36 48 60 QUANTITY (Millions of towels Suppose that trade open between the United States and China and that the United States intaly has no tariffs or quotas on towelsimpprted from China. At the world price of $6 per towel, the quantity ofstowels demanded by U.S buyers is_ 36 millionthe quantity of towelssupplied by U.S. manufacturers is 24 million , and the quantity of towels imported from China is 48 million 24 million 36 million Suppose the United States places a quota on imports of towels from China. The quota limits imports of Chinese towels to 12 millionExplanation / Answer
42 million and 6 million, imports 36 million towels
sell more towels,receive the same price, more and high price
option D is correct answer