The diagram below shows the domestic demand and supply curves for denim jeans in Canada. The prevailing world price is P W . Assume that all jeans are identical.
FIGURE 34- 2
-Refer to Figure 34- 2. If Canada were to engage in no international trade in denim jeans, then the quantity consumed and produced in Canada would be

Question

The diagram below shows the domestic demand and supply curves for denim jeans in Canada. The prevailing world price is P W . Assume that all jeans are identical.
  FIGURE 34- 2
-Refer to Figure 34- 2. If Canada were to engage in no international trade in denim jeans, then the quantity consumed and produced in Canada would be

Quizplus · Accepted Answer

Without international trade, the equilibrium point would be where domestic demand (D) intersects with domestic supply (S) at point S1U1B13. At this point, the quantity produced domestically (QS1U1B13) is 27 million pairs of jeans, and the quantity consumed domestically (QS1U1B13) is 30 million pairs of jeans.

The Diagram Below Shows the Domestic Demand and Supply Curves