The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2.

-Refer to the figure above.If Lithasia does not engage in international trade,what is the domestic production of pens?

Question

The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2.
 
-Refer to the figure above.If Lithasia does not engage in international trade,what is the domestic production of pens?

Quizplus · Accepted Answer

Without international trade, Lithasia's domestic production of pens is represented by the point where the domestic supply curve (S) intersects with the domestic demand curve (D). This point is at a quantity of 12 units, so the answer is C.

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