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3. Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $400 per
3. Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $400 per ton. The U.S. is a price-taker in the tomatoes market. Refer to Scenario 9-1. If trade in tomatoes is not allowed, the price of tomatoes in the United States
a. will be greater than the world price.
b. will be equal to the world price.
c. could be greater than, equal to, or less than the world price; this cannot be determined.
d. will be less than the world price.
Price of Baskets $14 Domestic supply 10 World Price Domestic Demand 40 70 105 Quantity of BasketsPrice of Calculators $27 Domestic Supply 12- World Price 2 Domestic Demand 0 150 300 400 Quantity of CalculatorsStep by Step Solution
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