Effects of Environmental Regulations on Domestic Production and Imports
-Refer to the figure above.The graph represents consumers and suppliers in country that relies on imports.Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve.If the country allows imports, domestic supply is ____ .

Question

Effects of Environmental Regulations on Domestic Production and Imports 
-Refer to the figure above.The graph represents consumers and suppliers in country that relies on imports.Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve.If the country allows imports, domestic supply is ____ .

Quizplus · Accepted Answer

When imports are allowed, the domestic supply is at the quantity where the domestic supply curve (S) intersects the import supply curve (I), which is at q₁.