if-the-world-price-is-higher-than-the-domestic-price-what-happens-to-the-quantit

Question

If the world price is higher than the domestic price, what happens to the quantity supplied and quantity demanded domestically?

Accepted Answer

Quantity supplied increases, and quantity demanded decreases.

Answer

Both quantity supplied and quantity demanded increase.

Answer

Both quantity supplied and quantity demanded decrease.

Answer

Quantity supplied decreases, and quantity demanded increases.