The market for soybeans in Canada consists solely of domestic buyers of soybeans and domestic sellers of soybeans if
A)consumer surplus equals producer surplus in the Canadian soybean market.
B)total surplus exceeds consumer surplus in the Canadian soybean market.
C)Canada permits international trade in soybeans.
D)Canada forbids international trade in soybeans.

Question

Quizplus · Accepted Answer

If Canada forbids international trade in soybeans, then the market for soybeans will be limited to only domestic buyers and sellers. This means that there will be no competition from foreign producers or demand from foreign buyers, which can affect the equilibrium price and quantity. Therefore, choice D is the best answer.

The Market for Soybeans in Canada Consists Solely of Domestic