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Example

Example. A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound. Unlimited quantities are available for import into the U.S. at this price. The U.S. domestic supply and demand for various price levels are:. Supply and Demand. Questions.

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  1. Example A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound. Unlimited quantities are available for import into the U.S. at this price. The U.S. domestic supply and demand for various price levels are:

  2. Supply and Demand

  3. Questions • What is the equation for demand? Supply? • At a price of $9, what is the price elasticity of demand? What is it at a price of $12? • What is the price elasticity of supply at $9? At $12? • In a free market, what will by the U.S. price and level of fiber imports?

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