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

$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { supplied } \
\text { (domestic) }
\end{array} & \text { Price } & \begin{array} { c }
\text { Quantity } \
\text { demanded } \
\text { (domestic) }
\end{array} \
\hline 12 & \$ 5 & 2 \
\hline 10 & 4 & 4 \
\hline 7 & 3 & 7 \
\hline 4 & 2 & 11 \
\hline 1 & 1 & 16 \
\hline
\end{array}$
-Given free trade,that is assuming no tariff,the outputs produced by domestic and foreign producers,respectively,would be:

Question

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

$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (domestic) }
\end{array} & \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (domestic) }
\end{array} \
\hline 12 & \$ 5 & 2 \
\hline 10 & 4 & 4 \
\hline 7 & 3 & 7 \
\hline 4 & 2 & 11 \
\hline 1 & 1 & 16 \
\hline
\end{array}$
-Given free trade,that is assuming no tariff,the outputs produced by domestic and foreign producers,respectively,would be:

Quizplus · Accepted Answer

With the world price at $1, domestic supply is 1 unit (as domestic producers will only supply 1 unit at this price), and domestic demand is 16 units. Therefore, the difference (15 units) would need to be met by imports from foreign producers.

The Following Are Domestic Supply and Demand Schedules for a Product