Graph 9-8

-According to Graph 9-8, how many units of this product would be imported after trade?
A) 800
B) 600
C) 400
D) 200

Question

Graph 9-8
 
-According to Graph 9-8, how many units of this product would be imported after trade?
A) 800 
B) 600 
C) 400 
D) 200

Quizplus · Accepted Answer

The point where the world price intersects with the domestic supply curve represents the amount of domestic production. Any amount of demand above that point must be satisfied by importing from other countries. In this case, the domestic supply curve intersects with the world price at 600 units. Any demand above 600 units would require importing from other countries. Therefore, the answer is B) 600.

Graph 9-8 -According to Graph 9-8, How Many Units of This Product