The figure above shows the market for shirts in Australia, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above, with international trade Australian consumers buy _______ million shirts per year.

Question

Quizplus · Accepted Answer

With international trade, Australian consumers will buy at the world price where their demand is highest. The quantity at the world price level indicates the total consumption, which is 48 million shirts per year.

The Figure Above Shows the Market for Shirts in Australia