The Figure Given Below Shows the Import Demand and Export

question 4

Multiple Choice

The figure given below shows the import demand and export supply curves of corn in the U.S. and Mexico.Figure 20.2

-Refer to Figure 20.2. The no-trade equilibrium price of corn in the U.S. is:

• A)$2.
• B)$4.
• C)$6.
• D)$8.
• E)$10.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Equilibrium Quantity

The amount of goods or services that are bought and sold at the equilibrium price, where market demand meets market supply.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.