The U.S. domestic market for T-shirts is illustrtaed below.
The world price of T-shirts is $5.00 and the U.S. can buy all of the T-shirts it desire at that price. Illustrate the world price on the graph above. Will the U.S. export or import T-shirts? How several will be traded?
If the world price of T-shirts is $5.00, the U.S. will import T-shirts. They will import (QD - QS) T-shirts.
