The Following Figure Shows the Demand Curve, D, and the Supply

question 226

Multiple Choice

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.

-Refer to the figure above.Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?

• A) Both the domestic sellers and buyers are made worse off.
• B) Both the domestic sellers and buyers gain.
• C) The domestic sellers lose, but the domestic buyers gain.
• D) The domestic sellers gain, but the domestic buyers lose.

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Definitions:

Intervertebral Discs

The fibrocartilaginous pads situated between the vertebrae of the spine, providing cushioning and facilitating movement.

Fibrocartilage

A type of tough and inflexible cartilage that contains fibrous bundles of collagen, such as that found in the intervertebral disks and at the insertions of ligaments and tendons.

Atlas And Axis

The first two cervical vertebrae that support the skull and enable head movements such as nodding and rotation.

Pivoting

The action of rotating around a single point or axis, often used to describe movements in sports, dance, or mechanics.