-Refer to Exhibit 34-2

question 136

Multiple Choice

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers?

• A) Q₁ from U.S.producers and (Q₃ - Q₁)from foreign producers
• B) Q₂ from U.S.producers and (Q₃ - Q₁)from foreign producers
• C) (Q₃ - Q₁)from U.S.producers and Q₁ from foreign producers
• D) Q₃ from U.S.producers and nothing from foreign producers

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Definitions:

Primary Causes

Fundamental reasons or root causes that directly lead to an event, situation, or outcome, distinct from secondary or tertiary factors.

Remedy

Refers to a treatment, solution, or means of correcting or improving a problem, situation, or condition.

Bullwhip Measure

A metric used to quantify the increase in fluctuation at higher tiers of a supply chain caused by small changes in demand at the consumer end.

Bullwhip Effect

A phenomenon in supply chains where minor fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesaler, manufacturer, and supplier levels.