The figure shows the US market for flip flops With internat

The figure shows the U.S. market for flip - flops. With international trade, the equilibrium price in the United States is and the United States flip - flops. $14; does not trade $12; imports $12; exports $14; imports $12; exports

Solution

With trade, world price = domestic price = $12

Domestic demand = 700, Domestic supply = 300

Imports = 700 - 300 = 400

Correct option (B).