Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations:QSU.S. = 2PQDU.S. = 200 - 2P.Demand (QD) and supply (QS) in the rest of the world is represented by the equations:QS = PQD =160 - P.Quantities are measured in thousands and price, in U.S. dollars.After the opening of free trade with the rest of the world, if the world price of bicycles settles at $60, the United States will
A. import 60,000 bicycles.
B. export 60,000 bicycles.
C. export 40,000 bicycles.
D. import 40,000 bicycles.
Answer: C
Economics
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