Figure 9-21 The Following Diagram Shows the Domestic Demand and Domestic Supply

question 203

Multiple Choice

Figure 9-21
The following diagram shows the domestic demand and domestic supply for a market.In addition,assume that the world price in this market is $40 per unit.
-Refer to Figure 9-21.With free trade,domestic production and domestic consumption,respectively,are

• A)1,200 and 800.
• B)1,600 and 1,200.
• C)1,600 and 800.
• D)1,200 and 1,200