Scenario 9-1 The Before-Trade Domestic Price of Peaches in the United States

Multiple Choice

Scenario 9-1
The before-trade domestic price of peaches in the United States is $40 per bushel.The world price of peaches is $52 per bushel.The U.S.is a price-taker in the market for peaches.
-Refer to Scenario 9-1.If trade in peaches is allowed,the price of peaches in the United States

A) will be greater than the world price.
B) will be equal to the world price.
C) will be less than the world price.
D) could be greater than,equal to,or less than the world price;this cannot be determined.