00:01
Hello students, we are given a question here.
00:02
Suppose that the current international price of wheat is $6 per bushel and that the us is currently exporting 30 million bushels per year.
00:13
If the us suddenly became a closed economy with respect to wheat, then would the domestic price of wheat in the us end up higher or lower than $6? so we are supposed to know that here.
00:29
If the exports for a we can write here that if the exports for a particular product stopped students particular product particular product is stopped then supply of goods within supply of goods within okay within country will be more country will be more and will meet the demand of will meet the demand of domestic consumers.
01:29
Okay, students, domestic consumers.
01:34
As a result, you can write here, as a result, prices in domestic market, okay students prices in a domestic market will fall for will fall for that product okay students now here we are supposed to know that what we can state further then if the us became if the us okay students if the us became closed economy with respect to closed economy with respect to wheat, students with respect to wheat, then domestic prices domestic prices in a us will end up lower than, here we can say that lower than $6...