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 were depicting an autarky economy,the amount being bought domestically is:

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 were depicting an autarky economy,the amount being bought domestically is:

Quizplus · Accepted Answer

In an autarky economy, the domestic demand and supply curves are the only relevant factors as there is no international trade. The point where these curves intersect gives us the equilibrium quantity and price. In this case, the equilibrium point is at 85 units and $16 each. Therefore, the amount being bought domestically is 85 at $16 each, which corresponds to choice C.

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