Figure 9-1

-Refer to Figure 9-1.At the world price and with free trade,

Question

Figure 9-1
 
-Refer to Figure 9-1.At the world price and with free trade,

Quizplus · Accepted Answer

At the world price, the domestic quantity of baskets supplied is equal to the domestic quantity of baskets demanded, indicating that the basket market is in equilibrium. Option A is incorrect because there is no indication that the quantity demanded is greater than the quantity supplied. Option C is incorrect because there is no information provided to determine the elasticity of demand. Option D may not be true for all producers and consumers, as some may be negatively affected by free trade.

Figure 9-1 -Refer to Figure 9-1.At the World Price and with Free