-If the economy in the diagram above is open to trade and the world price of oil is $25 per barrel,then this economy will _________ million barrels of oil.

Question

Quizplus · Accepted Answer

The world price of oil is $25 per barrel, which is below the domestic price of $30 per barrel. This means that the country will export oil to take advantage of the higher world price. The quantity exported will be 6 million barrels, as this is the difference between the domestic supply and demand at the world price.

-If the Economy in the Diagram Above Is Open to Trade