Exhibit 17.3

-Refer to Exhibit 17.3, which shows the supply of and the demand for baseballs in the United States. If the world price is $3 per baseball, then _____ baseballs are imported.

Question

Exhibit 17.3
 
-Refer to Exhibit 17.3, which shows the supply of and the demand for baseballs in the United States. If the world price is $3 per baseball, then _____ baseballs are imported.

Quizplus · Accepted Answer

At a world price of $3 per baseball, the quantity demanded in the United States is 12,000 baseballs and the quantity supplied is 4,000 baseballs. This leads to a shortage of 8,000 baseballs. Since the world price is lower than the domestic price of $4 per baseball, imports will occur to make up for the shortage. Therefore, 8,000 baseballs will be imported into the United States.

Exhibit 17.3 -Refer to Exhibit 17.3, Which Shows the Supply of and the Supply