Suppose market demand for cotton is perfectly inelastic at 4 billion kg of cotton per year and that the market supply curve is as shown. 1. What is the market price for cotton? 2. Which of these statements is correct (there is at least more than 1 correct answer)

Figure 11-4: International LR market supply curve for cotton Price, $ per kg Iran s United States 1.56 Nicaragua, Turkey 1.43 Brazil 1.27 Australia 108 Argentina Pakistan 0.71 2 3 5 6 6.8 Cotton, billion kg per year What is the market price for cotton? What is true about the market for cotton? (Select each correct answer.) Argentina produces cotton at a profit The United States produces cotton at a profit Iran produces cotton at a profit Brazil is capacity constrained X Submit You have used 1 of 2 attempts Save