The following are domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.

$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { supplied } \
\text { (domestic) }
\end{array} & \text { Price } & \begin{array} { c }
\text { Quantity } \
\text { demanded } \
\text { (domestic) }
\end{array} \
\hline 12 & \$ 5 & 2 \
\hline 10 & 4 & 4 \
\hline 7 & 3 & 7 \
\hline 4 & 2 & 11 \
\hline 1 & 1 & 16 \
\hline
\end{array}$
-If this nation were entirely closed to international trade,the equilibrium price and quantity would be:

Question

The following are domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.

$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (domestic) }
\end{array} & \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (domestic) }
\end{array} \
\hline 12 & \$ 5 & 2 \
\hline 10 & 4 & 4 \
\hline 7 & 3 & 7 \
\hline 4 & 2 & 11 \
\hline 1 & 1 & 16 \
\hline
\end{array}$
-If this nation were entirely closed to international trade,the equilibrium price and quantity would be:

Quizplus · Accepted Answer

In a closed economy, the equilibrium price and quantity are determined where the quantity supplied equals the quantity demanded. From the table, this occurs at a price of $3 with a quantity of 7 units.

The Following Are Domestic Supply and Demand Schedules for a Product