Use the Following Table for Country X to Answer the Question

question 138

Multiple Choice

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Q_dd) and Column 3 is the quantity supplied domestically (Q_sd) . Refer to the table above. If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product?

• A) Any price below $1.00
• B) Any price above $1.00
• C) Any price below $3.00
• D) Any price above $3.00

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Definitions:

Net Income

The overall income a company retains following the deduction of all costs, such as taxes and operational expenses, from its gross revenue.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Owner's Capital

The amount of equity a business owner has in the firm, representing the owner's personal investment plus any profits retained in the business.