The following data is for the hypothetical nations of Alpha and Beta.Q s is domestic quantity supplied and Q d is domestic quantity demanded.

-Refer to the above data.The equilibrium world price of steel must be between:

Question

The following data is for the hypothetical nations of Alpha and Beta.Q s is domestic quantity supplied and Q d is domestic quantity demanded.
 
-Refer to the above data.The equilibrium world price of steel must be between:

Quizplus · Accepted Answer

The equilibrium price of steel will be determined by the intersection of the world demand curve and the world supply curve. From the data given, we can see that the world demand curve intersects the world supply curve somewhere between a price of $3 and $2, where the quantity demanded and supplied are both equal to 12 million tons. Therefore, option C is the correct answer.

The Following Data Is for the Hypothetical Nations of Alpha