Refer to the Figure Below to Answer the Following Questions

question 34

Multiple Choice

Refer to the figure below to answer the following questions.

The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
Figure 31.1.1
-In Figure 31.1.1, with international trade Canadians buy ________ million shirts per year.

• A)48
• B)32
• C)16
• D)24
• E)56

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Definitions:

Overproduction

occurs when production exceeds the demand for a product, often leading to surplus and potential waste.

External Costs

Costs that are not borne by the producers or consumers directly involved in a transaction but are imposed on other parties or the environment.

True Cost

Encompasses all the economic, environmental, and social costs associated with the production and consumption of a good or service.

Resource

Raw materials, labor, capital, and other inputs used in the production of goods and services.