The international equilibrium price (or world price) and
Quantity for a traded item is determined by:

Question

Quizplus · Accepted Answer

The international equilibrium price and quantity for a traded item are determined by the intersection of the export supply schedule and the import demand schedule. This is because the price and quantity that international buyers are willing to pay for a product and the amount that foreign suppliers are willing to sell are influenced by various factors like production costs, foreign exchange rates, and government policies. Thus, the market forces of supply and demand determine the international equilibrium price and quantity, not any organization or government agency.

The International Equilibrium Price (Or World Price) and