The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-The United States has no comparative advantage in shipping, so a domestic shipping industry has no reason to exist.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-The United States has no comparative advantage in shipping, so a domestic shipping industry has no reason to exist.

Quizplus · Accepted Answer

The presence of a demand and supply curve indicates that there is trade happening in the market. While the US may not have a comparative advantage in shipping, there may be other factors that make it economically viable for a domestic shipping industry to exist.

The Figure Below Shows the Demand (D) and Supply (S)