Refer to the Graph Above, Where S_d and D_d Are

question 137

Multiple Choice

Refer to the graph above, where S_d and D_d are the domestic supply and demand curves for a product. The world price of the product is $6. If this market were closed to international trade, the total revenue that would go to domestic producers would be:

• A) $600, but only $240 if the domestic market were open to international trade
• B) $600, but only $120 if the domestic market were open to international trade
• C) $500, but only $240 if the domestic market were open to international trade
• D) $240, but only $120 if the domestic market were open to international trade

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Definitions:

Needs Hierarchy Model

A theoretical framework introduced by Abraham Maslow, proposing that human needs are arranged in a hierarchy, with basic needs at the bottom and self-actualization at the top.

Widely Recognized

Known or acknowledged by a large number of people or across a broad spectrum.

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep.

Prestige

The respect, admiration, or distinction accorded to an individual or organization from achievements, quality, or reputation.