(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, buyers and sellers will make exchanges at a price of _____ because buyers will refuse to pay _____ than the world price.

Question

(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, buyers and sellers will make exchanges at a price of _____ because buyers will refuse to pay _____ than the world price.
(Figure: Market for TVs 2) According to the figure, if there is international trade in this market, and the world price of televisions is $400, buyers and sellers will make exchanges at a price of _____ because buyers will refuse to pay _____ than the world price. A) $400; less B) $400; more C) $600; less D) $600; more

Quizplus · Accepted Answer

In this case, since the world price of televisions is $400, buyers will only be willing to pay up to that amount. If sellers try to charge more than $400, buyers will choose to purchase from international competitors instead, causing sellers to lose business. Therefore, the price at which buyers and sellers will exchange is $400, as noted in choice B.

(Figure: Market for TVs 2) According to the Figure, If