If a country bans the importation of a particular good, the market equilibrium is shown by the intersection of the foreign demand curve and the domestic supply curve.

Question

Quizplus · Accepted Answer

If a country bans the importation of a particular good, then there will be no foreign demand curve for that good. Therefore, the market equilibrium will be shown by the intersection of the domestic demand and supply curves.

If a Country Bans the Importation of a Particular Good