Graph 9-9
-In Graph 9-9, the free-trade price and quantity demanded would be:
A)P₁, Q₁
B)P₁, Q₄
C)P₂, Q₂
D)P₂, Q₃

Name: Graph 9-9 -In Graph 9-9, the free-trade price and quantity demanded would be: A)P₁, Q₁ B)P₁, Q₄ C)P₂, Q₂ D)P₂, Q₃
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Question

Graph 9-9 
-In Graph 9-9, the free-trade price and quantity demanded would be:
A)P₁, Q₁ 
B)P₁, Q₄ 
C)P₂, Q₂ 
D)P₂, Q₃

Quizplus · Accepted Answer

In a free-trade scenario, the price is determined by the world market, which is typically lower than the domestic price, leading to a higher quantity demanded. Hence, P₁, Q₄ represents the free-trade price and quantity demanded.

Graph 9-9 -In Graph 9-9, the Free-Trade Price and Quantity Demanded Would