The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
If this economy were to open to free trade, the domestic quantity supplied would:
A) drop from 815 units to 500 units.
B) drop from 815 units to 250 units.
C) increase from 250 units to 500 units.
D) increase from 815 units to 1,500 units.
Correct Answer:
Verified
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