Explanations 
Textbooks 
Flashcards 
91影视 AI 
Notes 
Study Plans 
Study Sets 
Find a degree 
Magazine Chapter 20: Q4. (page 432)
Refer to Figure 3.6, page 57. Assume that the graph depicts the U.S. domestic market for corn. How many bushels of corn, if any, will the United States export or import at a world price of \(1, \)2, \(3, \)4, and \(5? Use this information to construct the U.S. export supply curve and import demand curve for corn. Suppose that the only other corn-producing nation is France, where the domestic price is \)4. Which country will export corn; which county will import it?
Short Answer
The U.S.鈥檚 import-export at each price level will be:
Price | Quantity |
$1 | -15000 (Import) |
$2 | -7000 (Import) |
$3 | 0 |
$4 | 6000 (Export) |
$5 | 10000 (Export) |
The U.S. export supply curve and import demand curve for corn are shown below:
The U. S. will export, and France will import.
Step by step solution
Step 1. Import/export at different levels of price
The demand and supply schedule for corn in the U. S. is shown below:
The demand and supply at different price levels are given in Figure 3.6
Price | Demand | Supply | Surplus or Shortage |
$1 | 16000 | 1000 | -15000 |
$2 | 11000 | 4000 | -7000 |
$3 | 7000 | 7000 | 0 |
$4 | 4000 | 10000 | 6000 |
$5 | 2000 | 12000 | 10000 |
The import and export are decided when the country has a shortage or surplus, i.e., if the country has a shortage, it will import, and in the case of surplus, it will export.
Step 2. Constructing the export supply and import demand curve
The U.S. export supply curve and import demand curve for corn are shown below:
The curves are based on the surplus (S>D, thus exports) and shortage (D>S, thus imports) values.
Identification of export and Import countries
At $4, the U.S. will export, and France will import, as the U. S. has a surplus of corn.
Over 30 million students worldwide already upgrade their learning with 91影视!
