Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. If the country allows imports, domestic supply is ____. A) q₁ B) q₂ C) q₀ D) none of the above

Question

Quizplus · Accepted Answer

When imports are allowed, the domestic supply is at the quantity where the domestic supply curve (S) intersects the import supply curve (I), which is q₁.

Refer to the Figure Above