The figure given below shows the import demand and export supply curves of corn of 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 of 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 occurs where the import demand curve and export supply curve intersect. In this case, the intersection occurs at a price of $6, which is the price at which the U.S. and Mexico would agree to trade.

The Figure Given Below Shows the Import Demand and Export