Figure 9-6

-Refer to Figure 9-6.What does the world price for wagons represent
A)demand for wagons from the rest of the world
B)supply of wagons from the rest of the world
C)the level of inefficiency in the domestic market caused by trade
D)surplus in the domestic wagon market

Question

Figure 9-6
 
-Refer to Figure 9-6.What does the world price for wagons represent
A)demand for wagons from the rest of the world 
B)supply of wagons from the rest of the world 
C)the level of inefficiency in the domestic market caused by trade 
D)surplus in the domestic wagon market

Quizplus · Accepted Answer

The world price for wagons represents the supply of wagons from the rest of the world, as it is the price at which foreign producers are willing and able to sell their wagons on the world market.

Figure 9-6 -Refer to Figure 9-6.What Does the World Price for Wagons