when-the-world-price-is-higher-than-the-domestic-price-what-happens-to-the-domes

Question

When the world price is higher than the domestic price, what happens to the domestic market?

Accepted Answer

Quantity supplied increases, and quantity demanded decreases.

Answer

Both quantity supplied and quantity demanded decrease.

Answer

Quantity supplied decreases, and quantity demanded increases.

Answer

Both quantity supplied and quantity demanded increase.