The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is P W .Assume that all jeans are identical. FIGURE 33-2
-Refer to Figure 33-2.If Canada were to engage in no international trade in denim jeans,then the quantity consumed and produced in Canada would be

Question

The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is P W .Assume that all jeans are identical.  FIGURE 33-2
-Refer to Figure 33-2.If Canada were to engage in no international trade in denim jeans,then the quantity consumed and produced in Canada would be

Quizplus · Accepted Answer

Without international trade, the equilibrium quantity in Canada would be at the intersection of the domestic demand and supply curves, which is Q₃. This is the quantity that would be consumed and produced domestically in Canada.

The Diagram Below Shows the Domestic Demand and Supply Curves