The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5
-Refer to Figure 32-5.If Paperland does not engage in international trade,the equilibrium quantity of newsprint produced domestically will be

Question

The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.  FIGURE 32-5
-Refer to Figure 32-5.If Paperland does not engage in international trade,the equilibrium quantity of newsprint produced domestically will be

Quizplus · Accepted Answer

The equilibrium quantity is where the domestic demand and supply curves intersect. In this case, it is at point U1 where QS1 equals QD1. At this point, the quantity produced domestically is 13 billion tons of newsprint. Therefore, the correct answer is C - Q₃.

The Diagram Below Shows the Domestic Demand and Supply Curves