Figure 17-8 -Refer to Figure 17-8. the Horizontal Line at the World

Multiple Choice

Figure 17-8
-Refer to Figure 17-8. The horizontal line at the world price of wagons represents the

A) demand for wagons from the rest of the world.
B) supply of wagons from the rest of the world.
C) level of inefficiency in the domestic market caused by trade.
D) surplus in the domestic wagon market.