The Following Table Shows the Demand, Supply, and Price of Tulips

question 76

Multiple Choice

The following table shows the demand, supply, and price of tulips in the Netherlands. If the world price of tulips is $4 and there are no trade restrictions, the Netherlands will:

• A) produce 10,000, consume 4,000, and import 6,000 tulips.
• B) produce 10,000 and consume 10,000 tulips.
• C) produce 8,000 and consume 8,000 tulips.
• D) import all the tulips it consumes.
• E) consume only some of the tulips it produces.

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