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, Canada ________ helicopters per year.
A)exports 480
B)exports 720
C)imports 480
D)imports 240
E)exports 240

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, Canada ________ helicopters per year.
A)exports 480 
B)exports 720 
C)imports 480 
D)imports 240 
E)exports 240

Quizplus · Accepted Answer

At a price of $36 million per helicopter, the quantity demanded domestically is 720, while the quantity supplied domestically is 240. Therefore, Canada will export the difference between these two quantities, which is 480 helicopters per year.

Refer to the Figure Below to Answer the Following Questions