Figure 34-1 A graph shows Quantity, Q, on the horizontal axis and Price, P, on the vertical axis. Three values of Q are shown in increasing order: Q sub 1, Q sub 2, and Q sub 3. Two values of P are shown, in increasing order: P sub W and P sub N. A straight downward sloping line is drawn with a vertical intercept that is above the origin, labeled D sub US. A straight upward sloping line is drawn with a vertical intercept that is above the origin, but below P sub W. Five points are labeled on the graph, reading from left to right, top to bottom: ? Point A lies at the vertical intercept of D sub US ? Point E lies at the vertical intercept of S sub US ? Point D lies on S sub US with coordinates (Q sub 1, P sub W) ? Point B lies at the intersection of D sub US and S sub US, with coordinates (Q sub 2, P sub N) ? Point C lies on D sub US with coordinates (Q sub 3, P sub W). Five dashed lines are drawn on the graph, as follows: ? A vertical dashed line rises from (Q sub 1, 0) to point D ? A vertical dashed line rises from (Q sub 2, 0) to point B ? A vertical dashed line rises from (Q sub 3, 0) to point C ? A horizontal dashed line runs from (0, P sub N) to point B ? A horizontal dashed line runs from (0, P sub W) to point C. Refer to Figure 34-1. The U.S. demand and supply for a good are shown. Under a policy of free trade, the world price is PW. If there is a policy change such that imports are prohibited, the price becomes PN, U