
-Refer to the diagram above showing the domestic demand and supply curves for a specific product in a hypothetical nation called Zancuzi.When the world price for this product is $0.50,Zancuzi will have
A) a domestic shortage of 200 units.
B) a domestic surplus of 200 units.
C) a domestic shortage of 400 units.
D) neither a domestic surplus nor a domestic shortage.
E) a domestic surplus of 300 units.
Correct Answer:
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B) a
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