Figure 34-9

-In Figure 34-9, Pestoland exports pasta to Pastaland.Equilibrium will occur when

Question

Figure 34-9
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-In Figure 34-9, Pestoland exports pasta to Pastaland.Equilibrium will occur when

Quizplus · Accepted Answer

Equilibrium occurs when exports equal imports, meaning that Pestoland is exporting exactly the same amount of pasta that Pastaland is importing. This is shown at point C on the graph. Points E and B represent situations where either exports or imports are greater than the other, which will eventually lead to a surplus or shortage of pasta and therefore will not result in equilibrium.

Figure 34-9 ​

Figure 34-9