$$\begin{array} { c c | c c }
\hline{ \text { Demand } } && { \text { Supply } } \
\hline \mathrm { Q } & \mathrm { P } & \mathrm { Q } & \mathrm { P } \
\hline 12,000 & \$ 0 & 6,000 & \$ 0 \
10,000 & 1 & 7,000 & 1 \
8,000 & 2 & 8,000 & 2 \
6,000 & 3 & 9,000 & 3 \
4,000 & 4 & 10,000 & 4 \
\hline
\end{array}$$
-Refer to the table in the exhibit, which illustrates the domestic supply and demand for tulips in The Netherlands.Suppose the world price of tulips is $4, and no trade restrictions are in place.Which of the following describes what would happen in The Netherlands' tulip market?

Question

$$\begin{array} { c c | c c } 
\hline{ \text { Demand } } && { \text { Supply } } \
\hline \mathrm { Q } & \mathrm { P } & \mathrm { Q } & \mathrm { P } \
\hline 12,000 & \$ 0 & 6,000 & \$ 0 \
10,000 & 1 & 7,000 & 1 \
8,000 & 2 & 8,000 & 2 \
6,000 & 3 & 9,000 & 3 \
4,000 & 4 & 10,000 & 4 \
\hline
\end{array}$$
-Refer to the table in the exhibit, which illustrates the domestic supply and demand for tulips in The Netherlands.Suppose the world price of tulips is $4, and no trade restrictions are in place.Which of the following describes what would happen in The Netherlands' tulip market?

Quizplus · Accepted Answer

At the world price of $4, the quantity supplied in The Netherlands is 10,000, which is greater than the quantity demanded of 4,000. Therefore, there is excess supply of 6,000 tulips in the Netherlands. Since there are no trade restrictions in place, Dutch producers will look to export these excess 6,000 tulips to the world market. However, there will still be 4,000 tulips left over, which the Netherlands will not be able to export.
Therefore, the correct answer is D: The Netherlands would consume only some of the tulips it produces.

-Refer to the Table in the Exhibit, Which Illustrates the