This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this economy were to engage in free trade,the good would:

Question

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good.  According to the graph shown,if this economy were to engage in free trade,the good would:

Quizplus · Accepted Answer

In free trade, the domestic price will equal the world price. In this case, the world price is lower than the domestic equilibrium price, so domestic producers will not be able to compete with foreign producers, and the good will be imported.

This Graph Demonstrates the Domestic Demand and Supply for a Good,as