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The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

Question 67

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good.   If this economy were to go from autarky to free trade, domestic production would _______ and domestic consumption would _______. A) rise by 2,000 units; stay the same B) rise by 5,000 units; fall by 5,000 units C) fall by 3,000 units; fall by 3,000 units D) rise by 2,000 units; fall by 3,000 units If this economy were to go from autarky to free trade, domestic production would _______ and domestic consumption would _______.


A) rise by 2,000 units; stay the same
B) rise by 5,000 units; fall by 5,000 units
C) fall by 3,000 units; fall by 3,000 units
D) rise by 2,000 units; fall by 3,000 units

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