Final answer:
India will export or import mangos depending on whether its domestic equilibrium price is lower or higher than the world price. The quantity supplied by domestic producers and the quantity exported or imported depends on the difference between domestic supply and demand at the world price.
Step-by-step explanation:
The question revolves around the concept of international trade and how a country decides to import or export goods based on the world price and its domestic supply and demand. If the world price is $12 a case, and India's domestic equilibrium price for mangos is lower than $12, India will export mangos, as it would be profitable for them to sell at the higher world price. If the domestic price is higher, India will import mangos.
B. The quantity of mangos that domestic producers in India will supply depends on the domestic demand and supply at the given world price. If domestic production is cheaper than the world price of $12, producers will supply mangos to the market up to the point where their marginal cost matches the world price.
C. The quantity that India will export or import is the difference between domestic quantity supplied and domestic demand at the world price of $12.
D. If the world price changes to $tB, whether India exports or imports mangos will depend on how this new price compares to India's domestic equilibrium price. The amount India exports or imports will again be the difference between the quantity supplied and demanded domestically at the new world price.