The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 34- 4
-Refer to Figure 34- 4.Assume there is free trade in bicycles.If the world price of bicycles is $500,Canada's will be bicycles per year.
A) imports; 20 000
B) exports; 20 000
C) imports; 30 000
D) exports; 50 000
E) exports; 30 000
Correct Answer:
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