The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market. Figure 20.1
- Refer to Figure 20.1.The autarky equilibrium price of coffee in Columbia is:

Question

The first panel in the following figure shows the domestic demand (D) and supply (S) curves of Columbian coffee and the second panel shows the import demand and export supply of Columbian coffee in the international market. Figure 20.1 
- Refer to Figure 20.1.The autarky equilibrium price of coffee in Columbia is:

Quizplus · Accepted Answer

The autarky equilibrium price is where the domestic demand and supply curves intersect, which is at a price of $10. This is the price that would prevail in the absence of international trade.

The First Panel in the Following Figure Shows the Domestic