The Demand for Soybeans in a Country Is Given by D

question 93

Multiple Choice

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1 + 0.8P.Both demand (D) and supply (S) of soybeans are measured in millions of bushels.If the world price of soybeans equals $5 and this economy is open to trade,then this country will

• A) export 1 million bushels of soybeans.
• B) export 2 million bushels of soybeans.
• C) neither import nor export soybeans.
• D) import 1 million bushels of soybeans.
• E) import 2 million bushels of soybeans.

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Definitions:

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