Answer the Question on the Basis of the Following Domestic

question 129

Multiple Choice

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\ 12 & \$ 5 & 2 \\10 & 4 & 4 \\7 & 3 & 7 \\4 & 2 & 11 \\1 & 1 & 16\end{array}$ Refer to the given data.If this nation were entirely closed to international trade,equilibrium price and quantity would be:

• A) $5 and 2 units.
• B) $1 and 1 unit.
• C) $4 and 4 units.
• D) $3 and 7 units.

---

Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Sales

Sales of goods or services where the payment is delayed as per agreed terms, instead of requiring immediate payment.

Cash Receipts

Cash receipts are the total amount of money, including cash and checks, received by a business during a specific period from transactions.