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 consumption 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 consumption will ________ to ________.

Quizplus · Accepted Answer

When a foreign country engages in dumping by selling at a lower price (P2), domestic consumption increases because consumers can now buy the good at a cheaper price. The total domestic consumption increases to Q5, as more consumers are willing to buy the good at the lower price.

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