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Domestic supply of and demand for soybeans

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The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price () of soybeans is $550 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.

Reference no: EM131166778

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