Refer to Figure. Assume that the graph depicts the U.S. domestic market for corn.

Equilibrium price and quantity

How many bushels of corn, if any, will the United States export or import at a world price of $1, $2, $3, $4, and $5? Use this information to construct the U.S. export supply curve and import demand curve for corn. Suppose the only other corn producing nation is France where the domestic price is $4. Which country will export corn; which will import it?

Transcribed Image Text:

$6 6000-bushel surplus 7000-bushel shortage 4 6 7 8 10 12 14 16 18 Bushels of corn (thousands per week)