Exhibit 19.4

-Refer to Exhibit 19.4,which shows the supply of and the demand for baseballs in the United States.If the world price is $3 per baseball,then _____ baseballs are imported.

Question

Exhibit 19.4
 
-Refer to Exhibit 19.4,which shows the supply of and the demand for baseballs in the United States.If the world price is $3 per baseball,then _____ baseballs are imported.

Quizplus · Accepted Answer

At a world price of $3, the quantity demanded of baseballs in the United States is 10,000 (as shown by the demand curve). The domestic supply is only 6,000 (as shown by the supply curve). Therefore, the United States has a shortage of 4,000 baseballs. To make up for the shortage, the United States must import 4,000 baseballs from the rest of the world.

Exhibit 19.4 -Refer to Exhibit 19.4,which Shows the Supply of and the Supply