According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?

This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.



A. 60

B. 115

C. 150

D. 90


D. 90

Economics

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A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

a. supply-side economics. b. supplier-induced demand. c. supply shocks. d. ceteris paribus. e. the fallacy of supply.

Economics

Recognizing the incentive power of property rights and markets, some of the most die-hard central planners are now allowing

a. more influence from custom or religion b. family relations to play significant roles c. a role for markets d. communal ownership of property e. inefficient use of resources

Economics

Consumer surplus increases whenever the price of a good decreases

a. True b. False Indicate whether the statement is true or false

Economics

Raising the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply

A) raises; increase B) raises; decrease C) lowers; increase D) lowers; decrease

Economics