-The above figure shows the U.S.market for wheat.With international trade,the price of wheat in the United States is ________ per ton and the United States ________ wheat.
A) $16; exports
B) $14; exports
C) $14; imports
D) $16; imports
E) $14; does not trade

Question

-The above figure shows the U.S.market for wheat.With international trade,the price of wheat in the United States is ________ per ton and the United States ________ wheat.
A) $16; exports 
B) $14; exports 
C) $14; imports 
D) $16; imports 
E) $14; does not trade

Quizplus · Accepted Answer

The world price of wheat is $14 per ton. With free trade, the U.S. price will also be $14 per ton. At this price, the U.S. will export wheat because the domestic supply is less than the domestic demand at a price of $14 per ton.

-The Above Figure Shows the U