Refer to the table below to answer the following question.
Table 7.1.3

-Table 7.1.3 shows a country's demand and supply schedules for a good.At what world price would the country export this good?
A)at only $8 a unit
B)any price below $8
C)a price of $6 a unit
D)a price of $4 a unit
E)any price above $8 a unit

Question

Refer to the table below to answer the following question.
Table 7.1.3
 
-Table 7.1.3 shows a country's demand and supply schedules for a good.At what world price would the country export this good?
A)at only $8 a unit 
B)any price below $8 
C)a price of $6 a unit 
D)a price of $4 a unit 
E)any price above $8 a unit

Quizplus · Accepted Answer

A country will export a good when the world price is higher than its domestic price, as it can sell the good for more on the international market than it can at home. Without seeing Table 7.1.3, if the correct answer is any price above $8 a unit, it implies that at $8, the domestic supply equals domestic demand, and at prices above $8, the country produces more of the good than it consumes domestically, making it an exporter at those prices.

Refer to the Table Below to Answer the Following Question