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 of newsprint produced domestically is where the domestic demand and supply curves intersect, which is at point Q3. At this point, the quantity demanded and supplied is 25 thousand tons. Therefore, the answer is C.

The Diagram Below Shows the Domestic Demand and Supply Curves