The Diagram Below Shows the (Hypothetical)demand and Supply Curves for Regional

question 61

Multiple Choice

The diagram below shows the (hypothetical) demand and supply curves for regional jets in Canada.Assume that the market is competitive,all jets are identical,and that Canada engages in international trade. FIGURE 32-6 Refer to Figure 32-6.Assume the world price of a regional jet is $20 million.Further,suppose that Canada disallowed international trade in regional jets.With no trade in regional jets,Canadian consumers will spend ________ at the domestic equilibrium price and quantity versus ________ for the same quantity at the world price.

• A)$1000 million; $1800 million
• B)$1800 million; $1000 million
• C)$1400 million; $2100 million
• D)$2100 million; $2100 million
• E)$2100 million; $1400 million

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