Refer to the Diagram, Which Shows the Domestic Demand and Supply

question 106

Multiple Choice

Refer to the diagram, which shows the domestic demand and supply curves for a specific standardized product in a particular nation. If the world price for this product is $0.50, this nation will
Experience a domestic

• A) shortage of 160 units, which it will meet with 160 units of imports.
• B) shortage of 160 units, which will increase the domestic price to $1.60.
• C) surplus of 160 units, which it will export.
• D) surplus of 160 units, which will reduce the world price to $1.00.

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Definitions:

Resources

Assets, materials, and inputs required by an organization or individual to achieve objectives.

Legitimate Power

is a type of authority that is recognized and accepted by members of an organization, stemming from a formal position or role.

Formal Authority

The power or right to give orders, make decisions, and enforce obedience, typically within an organizational hierarchy.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.