If a nation imports a good that can be domestically produced,what happens to the quantity consumed of the good and why?
A) The quantity consumed increases because the market price decreases.
B) The quantity consumed decreases because the market price increases.
C) The quantity consumed remains constant because the price is unchanged.
D) The quantity consumed increases because the nation produces more of the good.
E) The quantity consumed decreases because the market price decreases.

Question

Quizplus · Accepted Answer

When a nation imports a good that can be domestically produced, the quantity consumed typically increases because the market price decreases. This happens due to the increased supply of the good from foreign sources, which, according to the law of supply and demand, leads to a lower market price, making the good more affordable and thus increasing consumption.

If a Nation Imports a Good That Can Be Domestically