Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.

-Refer to the graph above to answer this question.Assuming there is free trade,what quantity of mustard seeds will be imported?

Question

Below is a graph illustrating the market for mustard seeds in Rysen III.(Sd is domestic supply,and Dd is domestic demand. ).The world price of mustard seeds is $100.
 
-Refer to the graph above to answer this question.Assuming there is free trade,what quantity of mustard seeds will be imported?

Quizplus · Accepted Answer

At the world price of $1,000 per ton, domestic producers will supply 800 tons of mustard seeds, and domestic consumers will demand 1,800 tons. Thus, the quantity of mustard seeds imported will be 1,800 - 800 = 1,000 tons.

Below Is a Graph Illustrating the Market for Mustard Seeds