The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical.
FIGURE 33-4
-Refer to Figure 33-4. Assume there is free trade in bicycles. If the world price of bicycles is $500, Canada will
Bicycles per year.
A) import 30 000
B) import 20 000
C) export 30 000
D) export 20 000
E) export 50 000
Correct Answer:
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