Refer to the figure below to answer the following questions.

Figure 7.2.2
The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve. Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In Figure 7.2.2, with international trade, Canadian firms buy ________ helicopters per year.
A)240
B)480
C)720
D)360
E)600

Question

Refer to the figure below to answer the following questions.
  
Figure 7.2.2
The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve. Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In Figure 7.2.2, with international trade, Canadian firms buy ________ helicopters per year.
A)240 
B)480 
C)720 
D)360 
E)600

Quizplus · Accepted Answer

With international trade, Canadian firms buy 240 helicopters per year. This is because the world price of helicopters is lower than the Canadian price, so Canadian firms can import helicopters at a lower cost than they can produce them domestically.

Refer to the Figure Below to Answer the Following Questions