Exhibit 17-6
-In Exhibit 17-6,the world price of a baseball is $3.With free trade,how many baseballs will the United States import?

Question

Exhibit 17-6 
-In Exhibit 17-6,the world price of a baseball is $3.With free trade,how many baseballs will the United States import?

Quizplus · Accepted Answer

At the world price of $3, the domestic quantity demanded by the United States is 12,000 baseballs (point B). The domestic quantity supplied is only 4,000 baseballs (point A). This creates a shortage of 8,000 baseballs. With free trade, the United States will import the difference between domestic quantity demanded and domestic quantity supplied, which is 8,000 baseballs. Therefore, the correct answer is C) 8,000.

Exhibit 17-6 -In Exhibit 17-6,the World Price of a Baseball Is $3.With