Answer the question(s)below based on the following diagram.

-Refer to the diagram above,which represents a country's supply and demand for an internationally traded good.If PW is the world price,and a foreign country engages in dumping by selling at P2,total domestic production will ________ to ________.

Question

Answer the question(s)below based on the following diagram.
 
-Refer to the diagram above,which represents a country's supply and demand for an internationally traded good.If PW is the world price,and a foreign country engages in dumping by selling at P2,total domestic production will ________ to ________.

Quizplus · Accepted Answer

If a foreign country engages in dumping by selling at P2, which is lower than the domestic equilibrium price (P1), domestic producers will not be able to compete and will stop producing the good. As a result, total domestic production will decrease to zero. This is shown by the movement from point E to point G on the graph.

Answer the Question(s)below Based on the Following Diagram