Answer:The proportion of domestic demand for a good that is satisfied by domestic production relative to that supplied by imports is determined by the domestic production share of the market. This can be calculated using the following formula:
Domestic Production Share
=
Domestic Production
Total Demand
×
100
Domestic Production Share=
Total Demand
Domestic Production
×100
Where:
Domestic Production
Domestic Production is the quantity of the good produced domestically.
Total Demand
Total Demand is the total quantity of the good demanded in the domestic market, including both domestically produced and imported goods.
This ratio provides insight into the degree to which domestic production meets the local demand for a particular good. A higher domestic production share indicates a greater reliance on domestic production to meet the demand, while a lower share suggests a higher dependence on imports.