Figure 18.4
-Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

Question

Quizplus · Accepted Answer

With free trade, the equilibrium quantity of artichokes in Duckland would be determined by the intersection of the world price with Duckland's domestic demand curve, since the world price dictates the terms at which Duckland can import or export artichokes. Assuming the world price is below Duckland's domestic equilibrium price, Duckland would import artichokes up to the point where its domestic demand is satisfied at the world price level. The correct quantity, therefore, would be the one that aligns with Duckland's demand at the world price, which, based on the information provided, is 85.

Figure 18.4 -Refer to Figure 18.4.With Free Trade,what Is the Equilibrium Quantity