To answer the next question, use the following graph showing the domestic demand and supply curves for a specific standardized product in a particular nation.If the world price for this product is $0.50, this nation will experience a domestic

A. shortage of 160 units, which it will meet with 160 units of imports.
B. surplus of 160 units, which it will export.
C. shortage of 160 units, which will increase the domestic price to $1.60.
D. surplus of 160 units, which will reduce the world price to $1.00.


Answer: A

Economics

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