Question

Quantity along the import demand curve equals:

A. the quantity demanded by domestic consumers minus the quantity in the no-trade equilibrium.
B. the quantity demanded minus the quantity supplied by domestic producers at every price.
C. the quantity demanded at every price.
D. the quantity supplied by the domestic producers plus the quantity in the no-trade equilibrium.

Answer 1

The correct answer is option B.

Step-by-step explanation:

The quantity on the import demand curve shows the difference between the quantity demanded by the domestic consumers and the quantity that is being supplied by the domestic producers at every price.

At the current price level, if the quantity supplied by the producers is less than what consumers are demanding, the consumers will purchase the excess amount from foreign producers.