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 demand is ____ A) q₁ B) q₂ C) q₀ D) none of the above

Question

Quizplus · Accepted Answer

When imports are allowed, domestic demand will be the sum of domestic demand curve (D) and import supply curve (I) up to the point where they intersect with domestic supply curve (S). Therefore, the correct choice is q₀.

Refer to the Figure Above