The Figure Below Depicts the Steel Market for Portugal, a Small

Multiple Choice

The figure below depicts the steel market for Portugal, a small nation that is unable to affect the world price. Assume that Germany and France can supply steel to Portugal at a price of $200 and $300, respectively.

Figure 8.2. Portugal's Steel Market

-Consider Figure 8.2.With free trade, Portugal will

A) produce 10 tons of steel, consume 35 tons of steel, and import 25 tons of steel.
B) produce 15 tons of steel, consume 30 tons of steel, and import 15 tons of steel.
C) produce 0 tons of steel, consume 35 tons of steel, and import 35 tons of steel.
D) produce 15 tons of steel, consume 35 tons of steel, and import 20 tons of steel.