-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers? A) Q₁ from U.S.producers and (Q₃ - Q₁)from foreign producers B) Q₂ from U.S.producers and (Q₃ - Q₁)from foreign producers C) (Q₃ - Q₁)from U.S.producers and Q₁ from foreign producers D) Q₃ from U.S.producers and nothing from foreign producers

Question

Quizplus · Accepted Answer

At the world price P_W, U.S. consumers buy Q₃ in total, of which Q₁ is supplied by U.S. producers and the difference (Q₃ - Q₁) is imported.