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. At a world price of $300, Canada's
Will be bicycles per year.

Question

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. At a world price of $300, Canada's
Will be bicycles per year.

Quizplus · Accepted Answer

At a world price of $300, Canada's domestic supply is 10,000 bicycles per year, and its domestic demand is 40,000 bicycles per year. Therefore, Canada will import 30,000 bicycles per year (40,000 - 10,000).

The Diagram Below Shows Supply and Demand Curves for Bicycles