Figure 7-1 Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Under autarky,the equilibrium price is
A)$0.
B)$24.
C)$30.
D)$54.

Question

Figure 7-1  Figure 7-1 shows the U.S.demand and supply for leather footwear.
-Refer to Figure 7-1.Under autarky,the equilibrium price is
A)$0. 
B)$24. 
C)$30. 
D)$54.

Quizplus · Accepted Answer

Under autarky, the equilibrium price is where the demand and supply curves intersect, which is at $30. Therefore, C is the correct choice. A and B are incorrect because the equilibrium price is not at $0 or $24. D is incorrect because it is above the demand curve, meaning there will be excess supply at that price.

Figure 7-1 Figure 7-1 Shows the U