The First Panel in the Following Figure Shows the Domestic

question 93

Multiple Choice

The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market. Figure 20.1 Refer to Figure 20.1.If the price of Columbian coffee falls to $6 in the international market:

• A)there will be an excess supply of 8 pounds of Columbian coffee in the international market.
• B)the Columbian domestic market for coffee will be in equilibrium.
• C)the international market for coffee will be in equilibrium.
• D)there will be an excess demand of 4 pounds for coffee in Columbia's domestic market.
• E)there will be an excess supply of coffee in Columbia's domestic market.

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that collectively represent millions of workers in the United States.

House of Commons

The lower house of the Parliament of the United Kingdom, responsible for making and passing laws.

Employer Demands

Requirements or conditions set by employers during negotiations with employees or unions regarding salaries, working conditions, and other employment terms.

Voluntaristic System

An approach to labor relations in which union membership and worker representation are matters of individual choice rather than legal requirement.