The Graph Shown Demonstrates the Domestic Demand and Supply for a Good

question 136

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. If this economy is an autarky, its equilibrium price is _______ and its equilibrium quantity is _______.

• A)$175; 815
• B)$215; 500
• C)$130; 1,150
• D)$130; 500

---

Definitions:

Industry's Output

The total production of goods or services generated by all firms operating within a specific industry.

Decreasing-Cost Industry

An industry characterized by a downward-sloping long-run supply curve, indicating lowering costs as industry output increases.

Increasing-Cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Industry Expands

The process of a sector in the economy growing due to an increase in demand, production, and often, employment.