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Use the Following to Answer Questions

Question 8

Multiple Choice

Use the following to answer questions :
Figure 18-2 Use the following to answer questions : Figure 18-2   -Consider Figure 18-2.Assuming that there is free trade of AC and negligible transportation cost, the price of pounds in terms of dollars is closest to: A) $1.00. B) $2.50. C) $5.00. D) $10.00. E) cannot be determined from the diagram.
-Consider Figure 18-2.Assuming that there is free trade of AC and negligible transportation cost, the price of pounds in terms of dollars is closest to:


A) $1.00.
B) $2.50.
C) $5.00.
D) $10.00.
E) cannot be determined from the diagram.

Correct Answer:

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