(Figure: Home's ImportCompeting Industry) Based on the graph, which
Of the following statement(s) about the Home import demand curve
Is(are) CORRECT?
I.The Home import demand curve shows total imports of the product at
Various world prices
II.According to the Home import demand curve, this nation would import
Nothing when the world price is $100.
III.According to the Home import demand curve, this nation would import
900 units when the world price of $50.
A)I
B)II
C)III
D)I, II, and III

Question

(Figure: Home's Import­Competing Industry) Based on the graph, which
Of the following statement(s) about the Home import demand curve
Is(are) CORRECT?
I.The Home import demand curve shows total imports of the product at
Various world prices
II.According to the Home import demand curve, this nation would import
Nothing when the world price is $100.
III.According to the Home import demand curve, this nation would import
900 units when the world price of $50.
A)I 
B)II 
C)III 
D)I, II, and III

Quizplus · Accepted Answer

I. The Home import demand curve shows the quantity of imports demanded at different world prices.
II. According to the Home import demand curve, this nation would not import anything when the world price is $100 because at this price, the domestic price is lower than the world price, making it more expensive to import.
III. According to the Home import demand curve, this nation would import 900 units when the world price is $50. At this price, the domestic price is higher than the world price, making it cheaper to import.

(Figure: Home's Import­Competing Industry) Based on the Graph, Which

(Figure: Home's ImportCompeting Industry) Based on the Graph, Which