Scenario: Now suppose the United States continues to trade wheat freely with the rest of the world but that the world price is $6 per bushel, as shown in the figure below.

-Refer to the scenario above.At this new world price,the United States ________ wheat in the amount of ________ million metric tons.

Question

Scenario: Now suppose the United States continues to trade wheat freely with the rest of the world but that the world price is $6 per bushel, as shown in the figure below.
 
-Refer to the scenario above.At this new world price,the United States ________ wheat in the amount of ________ million metric tons.

Quizplus · Accepted Answer

The United States exports wheat because it has a comparative advantage or surplus at the given world price, and the specific amount is determined by the difference between its domestic production and consumption at that price point, which is 6 million metric tons.

Scenario: Now Suppose the United States Continues to Trade Wheat