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. If the price of coffee in the international market is $14:
A) there will be an excess demand of 10 pounds in Columbia's domestic market.
B) Columbia's domestic market for coffee will be in equilibrium.
C) there will be an excess demand for Columbian coffee in the international market.
D) the international market for coffee will be in equilibrium.
E) Columbia will export 4 pounds of coffee.
Correct Answer:
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