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

question 43

Multiple Choice

The graph shown demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy decides to open to trade, domestic producers will have to cut:

• A)production by 55 units.
• B)production by 90 units.
• C)prices by $3.
• D)prices by $7.

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