(Figure: The Market for Apple AirPods) Use Figure: The Market for Apple AirPods. Assume that Sd represents the domestic supply curve and that Dd represents the domestic demand curve. If the world price equals $120, and there is free trade, this country will:

Question

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At a world price of $120, the domestic price in this country is below the world price, which means there is an incentive for domestic producers to export their AirPods to other countries. As a result, this country will export 150,000 AirPods, shown as the difference between domestic supply (Sd) and domestic demand (Dd) at the world price.

(Figure: the Market for Apple AirPods) Use Figure: the Market