If the current equilibrium price for a bushel of corn is $50.00, what happens to the equilibrium price of corn if import restrictions on corn are lifted?

If import restrictions only in this country are lifted, equilibrium price will be lower, as there will be more supply and demand will stay the same.

Answered by mackiemesser | 2024-06-10

Lifting import restrictions on corn will increase the supply of corn in the market. This increased supply, with demand remaining the same, will lead to a decrease in the equilibrium price of corn from the current $50.00. Thus, the new equilibrium price will be lower than $50.00.
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Answered by mackiemesser | 2024-09-26