Refer to the Above Diagram Showing the Domestic Demand and Supply

question 53

Multiple Choice

Refer to the above diagram showing the domestic demand and supply curves for a specific standardized product in a particular nation.If the world price for this product is $1.60, this nation will experience a domestic:

• A)shortage of 160 units, which it will meet with 160 units of imports.
• B)shortage of 160 units, which will increase the domestic price to $1.60.
• C)surplus of 160 units, which it will export.
• D)surplus of 160 units, which will reduce the world price to $1.00.

---

Definitions:

Charles XII

Charles XII was a Swedish king known for his military leadership during the Great Northern War, reigning from 1697 to 1718.

Ottoman Empire

The Ottoman Empire was a state that controlled much of Southeast Europe, Western Asia, and North Africa between the 14th and early 20th centuries, known for its significant cultural, military, and political influence.

Sweden

A country in Northern Europe, known for its rich history, progressive social policies, and significant contributions to art, science, and technology.

War of Spanish Succession

The War of Spanish Succession (1701-1714) was a major European conflict triggered by the death of the childless Charles II of Spain, leading to a power struggle between several European powers to control the Spanish throne.