40 36- 32- 28- 24- 20- 16- 12- Price, P 8- Home Market 4- 0+ S D 6 Quantity, Q Q Q G The figure above gives Home's oats market before trade. The figure to the right shows a portion of the World market, with an export supply curve (derived from the pre-trade Foreign oats market). Using the line drawing tool, add Home's import demand curve to the top-right figure. Label this line "MD". Carefully follow the instructions above and only draw the required object. According to your diagram, after trade commences Home will A. produce 3 million tons, import 2 million tons, and sell all 5 million tons at $24 per ton. B. produce 4 million ton import 2 million tons, sell the former at $32 per ton and the latter at $24. C. produce 3 million tons, import 2 million tons, and sell all 5 million tons at $32 per ton. D. refuse to engage in trade since it harms Home's oats producers.

40 36- 32- 28- 24- 20- 16- 12- Price, P 8- Home Market 4- 0+ S D 6 Quantity, Q Q Q G The figure above gives Home's oats market before trade. The figure to the right shows a portion of the World market, with an export supply curve (derived from the pre-trade Foreign oats market). Using the line drawing tool, add Home's import demand curve to the top-right figure. Label this line "MD". Carefully follow the instructions above and only draw the required object. According to your diagram, after trade commences Home will A. produce 3 million tons, import 2 million tons, and sell all 5 million tons at $24 per ton. B. produce 4 million ton import 2 million tons, sell the former at $32 per ton and the latter at $24. C. produce 3 million tons, import 2 million tons, and sell all 5 million tons at $32 per ton. D. refuse to engage in trade since it harms Home's oats producers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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