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

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

Quizplus · Accepted Answer

The free-market equilibrium price (P0) is the price that would be established without any external interference, such as tariffs or quotas. As such, P0 is the world price, since it represents the price that would be established based on global market forces alone.

The Diagram Below Shows the Demand and Supply Curves for Refrigerators