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 engages in trade and the world price is PB,the residents of Paperland will consume ________ units of newsprint, and the net exports of newsprint from Paperland will be ________ units.
A) Q1; Q5 - Q1
B) Q2; zero
C) Q3; zero
D) Q4; Q5 - Q1
E) Q5; zero
Correct Answer:
Verified
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