(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, domestic consumers will purchase _____ units from domestic producers and _____ units from foreign producers.

Question

(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, domestic consumers will purchase _____ units from domestic producers and _____ units from foreign producers.
(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, domestic consumers will purchase _____ units from domestic producers and _____ units from foreign producers. A) 20,000; 30,000 B) 20,000; 60,000 C) 40,000; 30,000 D) 40,000; 60,000

Quizplus · Accepted Answer

At a world price of $400, domestic producers are willing to supply 30,000 units, while domestic consumers are only willing to purchase 20,000 units. This creates a surplus of 10,000 units. With international trade, domestic consumers will purchase all 20,000 units from foreign producers, and an additional 40,000 units from domestic producers for a total of 60,000 units. Therefore, the answer is B.

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