The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 20.3 In Figure 20.3, if the world price per gallon is $8, then without quotas:

Question

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 20.3  In Figure 20.3, if the world price per gallon is $8, then without quotas:

Quizplus · Accepted Answer

Without quotas, the market will reach equilibrium where the quantity demanded equals the quantity supplied at a price of $8 per gallon. At this price, the quantity demanded is 60 gallons and the quantity supplied is 30 gallons. Therefore, 30 gallons of corn syrup will be imported (quantity demanded minus quantity supplied).

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