The Following Graph Shows the Domestic Supply and Demand Curves

question 13

Multiple Choice

The following graph shows the domestic supply and demand curves for a good. S1 and S2 represent the domestic industry supply before and after the provision of a subsidy by the government respectively, while D represents the domestic demand for the product. Prior to the subsidy, the country was importing 300 units of the good. Refer to the graph to answer the question. If the government provides a subsidy on domestic production, then the demand for imports is equal to:

• A) 100 units.
• B) 200 units.
• C) 300 units.
• D) 400 units.

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Definitions:

Long-term Regulation

The processes and mechanisms that the body uses to maintain stable internal conditions over long periods.

Blood Sugar Level

The concentration of glucose present in the blood, critical for maintaining energy levels and overall health, regulated by hormonal mechanisms.

Body Weight

The mass or quantity of heaviness of an individual, typically measured in kilograms or pounds.

Stomach Distention

The expansion or bloating of the stomach due to excess gas, fluid, or solid material, often causing discomfort.