Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. If the economy is opened to free trade, the price and quantity sold of this product would be:

image

A.  P c and v.
B.  P a and z.
C.  P t and y.
D.  P c and z.

answer:

D.  P c and z.