Figure 8.2 Exporting,Importing and Autarky Equilibrium in the Small Village Bean Market

Figure 8.2
Exporting,Importing and Autarky Equilibrium in the Small Village Bean Market
Panel (a) Panel (b) Panel (c)

-According to Figure 8.2,if we define LIP as the local import price,EP as the external market price,LEP as the local export price,and AP as the autarky price,and if trade with big city were possible,which panel describes a situation where buyers and sellers will chose not trade at all with big city?

A) Panel a
B) Panel b
C) Panel c
D) That situation is not described by any of the panels