Figure 17-6 The Domestic Country Is China

question 83

Multiple Choice

Figure 17-6
The domestic country is China.
-Refer to Figure 17-6. With no international trade,

• A) the equilibrium price is $12 and the equilibrium quantity is 300.
• B) the equilibrium price is $16 and the equilibrium quantity is 200.
• C) the equilibrium price is $16 and the equilibrium quantity is 300.
• D) the equilibrium price is $16 and the equilibrium quantity is 450.

---

Definitions:

Demand Curve

A graphical representation in economics showing the relationship between the price of a specific good and the amount of it that consumers are willing and able to purchase at various prices.

Supply Curve

The supply curve graphically represents the relationship between the price of a good and the quantity supplied by producers over a specific time period.

Market

A system or place where parties engage in exchange of goods, services, or information, characterized by supply and demand.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.