Figure 9-5
The figure illustrates the market for tricycles in a country.
-Refer to Figure 9-5.The horizontal line at the world price of tricycles represents the

Question

Figure 9-5
The figure illustrates the market for tricycles in a country. 
-Refer to Figure 9-5.The horizontal line at the world price of tricycles represents the

Quizplus · Accepted Answer

The horizontal line at the world price of tricycles represents the supply of tricycles from the rest of the world. This is because at the world price, foreign suppliers are willing and able to sell tricycles to the domestic market, and this sets the maximum price that domestic suppliers can charge for their tricycles.

Figure 9-5 The Figure Illustrates the Market for Tricycles in a Country