Exhibit 19-5

-Exhibit 19-5 shows domestic supply and demand for baseballs in the United States. The world price of a baseball is $3. With free trade, how many baseballs will be purchased in the United States?

Question

Exhibit 19-5
 
-Exhibit 19-5 shows domestic supply and demand for baseballs in the United States. The world price of a baseball is $3. With free trade, how many baseballs will be purchased in the United States?

Quizplus · Accepted Answer

With free trade, the quantity of baseballs purchased in the United States will be determined by the world price of $3. At this price, the demand for baseballs in the U.S. will be 12,000, as consumers can purchase baseballs at the lower world price, increasing the quantity demanded.

Exhibit 19-5 -Exhibit 19-5 Shows Domestic Supply and Demand for Baseballs in Demand