With Free Trade, the Market for a Particular Good or Service

Multiple Choice

With free trade, the market for a particular good or service is in equilibrium when:

A) domestic supply is at its maximum possible level.
B) there are no exports to the world market.
C) imports into the domestic market are zero.
D) the price in the world market is equal to the price in the domestic market.
E) the domestic demand for the good equals the domestic supply of the good.