The diagram below shows the (hypothetical)demand and supply curves for regional jets in Canada. Assume that the market is competitive, all jets are identical, and that Canada engages in international trade.
FIGURE 33- 6
-Refer to Figure 33- 6. If the world price of a regional jet is $35 million, Canada will

Question

The diagram below shows the (hypothetical)demand and supply curves for regional jets in Canada. Assume that the market is competitive, all jets are identical, and that Canada engages in international trade.
  FIGURE 33- 6
-Refer to Figure 33- 6. If the world price of a regional jet is $35 million, Canada will

Quizplus · Accepted Answer

If the world price is $35 million and Canada is exporting, it indicates that Canada's domestic price is lower than the world price, allowing them to export the surplus. The figure likely shows that at $35 million, Canada produces more jets than it consumes domestically, resulting in exports of 20 jets per year.

The Diagram Below Shows the (Hypothetical)demand and Supply Curves for Regional