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If the World Price of a Good Is Lower Than

Question 67

Multiple Choice
If the world price of a good is lower than its domestic equilibrium price, the country

If the world price of a good is lower than its domestic equilibrium price, the country


A) imports a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
B) exports a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
C) imports a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers.
D) imports a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically.
E) imports a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.

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