(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:

Question

Quizplus · Accepted Answer

At the world price of $400, the domestic price of $500 is higher. This means that domestic consumers will import 60,000 units to take advantage of the lower price in the world market. Domestic producers will not export at this price since they can sell at a higher price domestically. And, domestic producers will not import since they can produce and sell at a higher price domestically. Therefore, the best choice is A.

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