The following graph shows the market equilibrium for corn in the United States.If the world price of corn is $6 and there are no trade restrictions,the United States will:
Figure 17.1

Question

The following graph shows the market equilibrium for corn in the United States.If the world price of corn is $6 and there are no trade restrictions,the United States will:​ ​
Figure 17.1
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Quizplus · Accepted Answer

At a world price of $6, the market price in the United States will also be $6. At this price, the quantity supplied by U.S. farmers is 7,000 bushels and the quantity demanded by U.S. consumers is 3,000 bushels, resulting in a surplus of 4,000 bushels. Since there are no trade restrictions, the United States will export this surplus of 4,000 bushels of corn to the world market. Therefore, the best choice is B, which indicates that the U.S. will produce 7,000 bushels of corn, consume 3,000 bushels of corn, and export 4,000 bushels of corn.

The Following Graph Shows the Market Equilibrium for Corn in the United