Figure 18.5
-For the good in Figure 18.5, with free trade, the people in the country will buy:

Question

Quizplus · Accepted Answer

With free trade, the market will reach equilibrium at the world price, which is represented by point E. At point E, the quantity demanded is Q5, which is greater than the quantity supplied domestically at Q3. Therefore, the people in the country will buy Q5-Q3, which is equal to Q2-Q4. This is represented by the difference between the domestic supply and demand at point E. Therefore, the correct answer is C, Q5.

Figure 18.5 -For the Good in Figure 18.5, with Free Trade, the Trade