Figure 9-2
The following diagram shows the domestic demand and domestic supply in a market.In addition,assume that the world price in this market is $40 per unit.
-Refer to Figure 9-2.With free trade,the country imports

Question

Figure 9-2
The following diagram shows the domestic demand and domestic supply in a market.In addition,assume that the world price in this market is $40 per unit. 
-Refer to Figure 9-2.With free trade,the country imports

Quizplus · Accepted Answer

With free trade, the country will consume 1,500 units of the good (point C), but only produce 300 units (point A). Therefore, the country will import the difference, which is 1,200 units (point E).

Figure 9-2 The Following Diagram Shows the Domestic Demand and Domestic Supply