The diagram below shows the demand and supply curves for refrigerators in Canada. FIGURE 33-1 Refer to Figure 33-1.The free-market equilibrium price of refrigerators in Canada is P₀,implying that P₀ is the

Question

Quizplus · Accepted Answer

The equilibrium price in a free market represents the world price, which is determined by the global supply and demand for the product. It is not affected by local factors such as tariffs or quotas. Therefore, the best choice for the free-market equilibrium price of refrigerators in Canada is D, world price.

The Diagram Below Shows the Demand and Supply Curves for Refrigerators