(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of a television is $400, the quantity demanded is _____, and domestic suppliers will sell _____ units to domestic consumers.

Question

(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of a television is $400, the quantity demanded is _____, and domestic suppliers will sell _____ units to domestic consumers.
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Quizplus · Accepted Answer

At the world price of $400, the quantity demanded is 80,000 (point A). Domestic suppliers are willing to supply 100,000 units at the domestic price of $600 (point E). Thus, if there is international trade, domestic suppliers will sell 20,000 units (100,000-80,000) to domestic consumers, and the remaining 60,000 units will be exported, resulting in a gain from trade. Choice C is the closest option to these numbers.

(Figure: Market for TVs 2) According to the Figure, If