The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.
FIGURE 33- 5
-Refer to Figure 33- 5. If Paperland does not engage in international trade, the equilibrium quantity of newsprint produced will be

Question

The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.
  FIGURE 33- 5
-Refer to Figure 33- 5. If Paperland does not engage in international trade, the equilibrium quantity of newsprint produced will be

Quizplus · Accepted Answer

The equilibrium quantity of newsprint produced is where the domestic demand and supply curves intersect. This occurs at point U1, which corresponds to a quantity of QS1. At this quantity, the price of newsprint will be P1. Therefore, the equilibrium quantity of newsprint produced is Q₃.

The Diagram Below Shows the Domestic Demand and Supply Curves