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

question 88

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 were to go from autarky to free trade, domestic production would _______ and domestic consumption would _______.

• A)rise by 2,000 units; stay the same
• B)rise by 5,000 units; fall by 5,000 units
• C)fall by 3,000 units; fall by 3,000 units
• D)rise by 2,000 units; fall by 3,000 units

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Definitions:

Anxiety

Sensing apprehension, stress, or restlessness over an event with an unpredictable result.

Abandonment

The act of leaving someone without support or care, often resulting in emotional or psychological distress.

Adrenal Medulla

The inner part of the adrenal glands that releases adrenaline and noradrenaline in response to stress, thereby preparing the body for 'fight or flight' reactions.

Catecholamines

A group of neurotransmitters, including dopamine, norepinephrine, and epinephrine, that play key roles in the body's stress response.