Chapter 9 Part II -- Showing Imports with a Supply and Demand Diagram

by Elson Blunt on Jul 12, 2014

We draw a local market for a good (pizza) where the world price is lower than the domestic price. Some suppliers, forced to lower their prices to compete on the world market, go out of business, and consumers eat more at the lower price. The difference between Qsupplied and Qdemanded are the imports.

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