The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-One danger associated with calls for fairness based on reciprocity is that calls for fair trade may be invoked in cases where foreign restrictions on domestic exports do not actually exist.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-One danger associated with calls for fairness based on reciprocity is that calls for fair trade may be invoked in cases where foreign restrictions on domestic exports do not actually exist.

Quizplus · Accepted Answer

The given statement is true as the demand and supply curves in the figure are not affected by any foreign restrictions on domestic exports. Therefore, calling for fair trade based on reciprocity in this case may not be relevant.

The Figure Below Shows the Demand (D) and Supply (S)