Refer to the figure above. What is the domestic demand for pens in Lithasia, after the economy opens up to free trade?

Assume that disposable income equals $1000 and the mpc equals 0.6. If total consumption equal $800, then autonomous consumption is equal to

A) $0. B) $200. C) $800. D) $1000.

Vertical relationships can increase profits through

a. preventing firms from evading regulation b. eliminating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. preventing price discrimination