The international equilibrium price (or world price) and quantity for a traded item is determined by:

Question

Quizplus · Accepted Answer

The international equilibrium price and quantity for a traded item is determined by the intersection of the export supply schedule and the import demand schedule. This is because the price and quantity at which buyers and sellers are willing to trade at is ultimately determined by supply and demand factors. The WTO and trade negotiations may influence trade policies, but they do not directly determine the world price and quantity. The U.S. Department of Commerce may have a role in regulating trade, but they do not set the international equilibrium price and quantity. Therefore, option C is the best choice.

The International Equilibrium Price (Or World Price) and Quantity for a Traded