The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical.
FIGURE 34- 4
-Refer to Figure 34- 4. Assume there is free trade in bicycles. If the world price of bicycles is $200, domestic consumption is and domestic production is .
A) 30 000; 50 000
B) 20 000; 60 000
C) 50 000; 30 000
D) 60 000; 20 000
E) 40 000; 40 000
Correct Answer:
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