-The above figure shows the U.S.market for flip-flops. With international trade, the equilibrium price in the United States is ________ and the United States ________ flip-flops.

Question

Quizplus · Accepted Answer

The equilibrium price with international trade is $12, and at this price, the U.S. imports flip-flops because the domestic price is higher without trade, indicating that the U.S. is importing to meet demand at the lower international price.

-The Above Figure Shows the U