The figure given below shows the import demand and export supply curves of corn in the U.S. and Mexico.Figure 20.2

-According to Figure 20.2, the international equilibrium price of corn is:

Question

The figure given below shows the import demand and export supply curves of corn in the U.S. and Mexico.Figure 20.2
 
-According to Figure 20.2, the international equilibrium price of corn is:

Quizplus · Accepted Answer

The international equilibrium price is the point where the import demand curve intersects with the export supply curve. In this case, that point is at a price of $6. This is where the quantity of corn demanded by the U.S. and Mexico is equal to the quantity of corn supplied by the U.S. and Mexico. Therefore, the best choice is C) $6.

The Figure Given Below Shows the Import Demand and Export