Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

The diagram illustrates a country’s domestic supply of, and demand for, a commodity that it both uses and exports. The world price moves from WP1 to WP2. What changes result in domestic consumption and the quantity exported?

  • Adomestic consumption OX to OZ; quantity of exports OY to OX
  • Bdomestic consumption OX to OZ; quantity of exports OY to OZ
  • Cdomestic consumption OY to OW; quantity of exports YX to OZ
  • Ddomestic consumption OY to OW; quantity of exports YX to WZ

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