This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good.
According to the graph shown,if the economy is in autarky and decides to open trade with a tariff,the impact on domestic supply is they will:
A) increase output from 250 to 500.
B) decrease output from 815 to 500.
C) increase output from 500 to 815.
D) decrease output from 1500 to 1150.
Correct Answer:
Verified
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