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 34.1 Refer to Figure 34.1.The autarky equilibrium price of coffee in Columbia is:

Question

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 34.1  Refer to Figure 34.1.The autarky equilibrium price of coffee in Columbia is:

Quizplus · Accepted Answer

In the first panel, the autarky equilibrium price is where the demand and supply curves intersect, which is at a price of $10. In the second panel, the intersection of import demand and export supply curves also occurs at a price of $10, indicating that the world price is the same as the autarky price in this case. Therefore, the best choice is C, which represents the autarky equilibrium price in Columbia.

The First Panel in the Following Figure Shows the Domestic