The Figure Below Shows the Demand (D) and Supply (S)

question 85

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P₁: Price of the good in the international market.P₂: Price of the good in the domestic market after the imposition of tariff by the government.P₃: No-trade price of the good in the domestic market.
-If the world price of a good is lower than its domestic equilibrium price, the country will:

• A)import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
• B)export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
• C)import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers.
• D)export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically.
• E)import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.

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Definitions:

Moral Panic

A widespread fear, often irrational, among the general public that some evil threatens the well-being of society, typically driven by media amplification.

Control Theory

A field of study that deals with how to influence the behavior of dynamical systems through the use of feedback mechanisms.

Deviance

Behaviors or actions that violate societal norms or expectations, leading to social disapproval.

Crime

Acts or omissions that violate the law and are punishable by the state, encompassing a wide range of illegal activities.