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

question 7

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 were to open to free trade, what amount of the good would be demanded domestically?

• A)250 units
• B)500 units
• C)1,150 units
• D)1,500 units

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Definitions:

Changing

Refers to the process of making something different from what it was before.

Immediate Outcomes

The direct results or effects that occur as a consequence of an action or event.

Omission Bias

The inclination to perceive actions that cause harm as more negative or morally inferior compared to equally damaging failures to act (omissions).

Relationship

Relates to the way in which two or more people or things are connected, or the state of being connected.