The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.

-Refer to the figure above.If Barylia does not engage in international trade,what is the production of calculators in the country?

Question

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.
 
-Refer to the figure above.If Barylia does not engage in international trade,what is the production of calculators in the country?

Quizplus · Accepted Answer

Without international trade, the domestic equilibrium price would be where the supply and demand curves intersect, which is at a price of $60 and a quantity of 40. Therefore, the domestic production would be 40 units.

The Following Figure Shows the Demand Curve, D, and the Supply