The diagram below shows the (hypothetical)demand and supply curves for regional jets in Canada.Assume that the market is competitive,all jets are identical,and that Canada engages in international trade. FIGURE 32-6 Refer to Figure 32-6.At what price is the total domestic demand for regional jets met completely by domestic supply?

Question

The diagram below shows the (hypothetical)demand and supply curves for regional jets in Canada.Assume that the market is competitive,all jets are identical,and that Canada engages in international trade.  FIGURE 32-6 Refer to Figure 32-6.At what price is the total domestic demand for regional jets met completely by domestic supply?

Quizplus · Accepted Answer

The intersection of the demand and supply curves gives us the equilibrium point where the quantity of regional jets demanded is equal to the quantity supplied domestically. At this point, the price is $40 million. However, the total demand for regional jets (which includes imported jets) exceeds domestic supply at this price level. As we move down the demand curve, the gap between domestic supply and total demand narrows until it is completely met at a price level of $30 million and above. Therefore, the correct answer is C: $30 million and above.

The Diagram Below Shows the (Hypothetical)demand and Supply Curves for Regional