Use the Following to Answer Question

question 72

Multiple Choice

Use the following to answer question:
-(Figure: The Domestic Supply and Demand for SUVs in the United States) Use Figure: The Domestic Supply and Demand for SUVs in the United States.Suppose the world price equals $50,000 and there is free trade.The United States would _____ SUVs.

• A)import 6 million
• B)export 6 million
• C)export 2 million
• D)import 2 million

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Definitions:

Exchange Rate

The worth of one currency when converted into another.

Currencies

Systems of money in general use in particular countries or geographical areas, facilitating the transfer of goods and services.

Balance of Payments Deficit

A situation where a country's total payments to other countries exceed its total receipts from other countries over a certain period.

Souvenirs and Clothing

Souvenirs and clothing encompass items purchased as memorabilia from a specific location or event and garments for personal use or adornment.