Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:





A.  v and vz.

B.  w and wy.

C.  w and wz.

D.  vx and xz.


A.  v and vz.

Economics

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Economics

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Economics