Scenario: Now suppose the United States can trade wheat with the rest of the world, taking the world price of $2 per bushel as given in the figure below.

-Refer to the scenario above.With free trade at the world price,the United States ________ wheat in the amount of ________ million metric tons.

Question

Scenario: Now suppose the United States can trade wheat with the rest of the world, taking the world price of $2 per bushel as given in the figure below.
 
-Refer to the scenario above.With free trade at the world price,the United States ________ wheat in the amount of ________ million metric tons.

Quizplus · Accepted Answer

The United States imports wheat because, at the world price, the quantity demanded domestically exceeds the quantity supplied domestically. The difference between the domestic demand and domestic supply at the world price indicates the amount of import, which is 6 million metric tons in this scenario.

Scenario: Now Suppose the United States Can Trade Wheat with the Rest