Before the tariff, trade with China pushes the price of a bradownward to 8 euros

Question

Before the tariff, trade with China pushes the price of a bradownward to 8 euros in the EU market. At this price, Europeanconsumers purchase 30 million bras (as determined by the EU demandcurve), and 10 million of these bras are purchased from EU bramakers (as determined by the EU supply curve). The difference, 20million bras, is imported from China.

Consider the differences betweentariffs and import quotas.

A tariff is a tax, or excise tax, levied on the sale of importedgoods. A tariff raises excise revenue for the government. Forexample, an EU tariff might take the form of a 2-euro excise tax oneach bra coming from China. The graph below shows the effect of a2-euro tariff in the market for bras in the EU. For simplicity,assume that the EU imports bras only from China. Notice that in theabsence of trade, the price of a bra in the EU would be 12 euros,at the intersection of EU supply and EU demand.

Before the tariff, trade with China pushes the price of a bradownward to 8 euros in the EU market. At this price, Europeanconsumers purchase 30 million bras (as determined by the EU demandcurve), and 10 million of these bras are purchased from EU bramakers (as determined by the EU supply curve). The difference, 20million bras, is imported from China.

Explanation / Answer

that would be from the demand side at 10 euro's......so would be25 million bras

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