In which of the following cases is it likely that the entire U.S.domestic demand for corn is met through imports?
A)The price of corn in the rest of the world is equal to the domestic price of corn in the U.S.
B)The uniform world price of corn is less than the minimum price at which the U.S.producers are willing to supply.
C)The price of corn in the rest of the world exceeds the domestic U.S.price of corn.
D)The uniform world price of corn exceeds the cost of U.S.production of corn.

Question

Quizplus · Accepted Answer

If the uniform world price of corn is less than the minimum price at which U.S. producers are willing to supply, then it is not profitable for U.S. producers to produce corn. Therefore, the entire U.S. domestic demand for corn may be met through imports.

In Which of the Following Cases Is It Likely That