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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40-
36-
32-
28-
Price, P
24-
20-
16-
12-
8-
4-
O.
--
-~
2
World Market
-3
A.
XS
-co
6
Quantity, Q
8
27
Transcribed Image Text:40- 36- 32- 28- Price, P 24- 20- 16- 12- 8- 4- O. -- -~ 2 World Market -3 A. XS -co 6 Quantity, Q 8 27
Price, P
40
36-
32-
28-
24-
20-
16-
12-
8-
4-
0+
Home Market
0
2 3 4
S
D
8
6
Quantity, Q
Q
Q
N
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.
Transcribed Image Text:Price, P 40 36- 32- 28- 24- 20- 16- 12- 8- 4- 0+ Home Market 0 2 3 4 S D 8 6 Quantity, Q Q Q N 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.
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