This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, domestic prices would:

A. remain $16, with more units sold overall.
B. decrease to $11 for all units.
C. remain $16 for domestically produced goods, and be $23 for those units imported.
D. increase to $23 for all units.


Answer: D

Economics

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