SCENARIO: FREEDONIAN EXPORTS in the Small Country of Freedonia, the Domestic Demand for Domestic

SCENARIO: FREEDONIAN EXPORTS
In the small country of Freedonia, the domestic demand for
Widgets is represented by P = 100 - 3Q; the home supply
Of widgets is represented by P = 1Q.
Reference: Ref 10­4
(Scenario: Freedonian Exports) Freedonia engages in
International trade in widgets.The world price is $40.How
Many widgets will be consumed domestically and how many
Will be exported?

A) It will consume 20 domestically and export 20.
B) It will consume 20 domestically and export 40.
C) It will consume 40 domestically and export 20.
D) It will consume zero domestically and export 20.