Refer to the Diagram, Which Shows the Domestic Demand and Supply

Refer to the diagram, which shows the domestic demand and supply curves for a specific standardized product in a particular nation. If the world price for this product is $1.60, this nation will experience a domestic

A) shortage of 160 units, which it will meet with 160 units of imports.
B) shortage of 160 units, which will increase the domestic price to $1.60.
C) surplus of 160 units, which it will export.
D) surplus of 160 units, which will reduce the world price to $1.00.