Refer to Figure 17-8. The horizontal line at the world price of wagons represents the

A) demand for wagons from the rest of the world.
B) supply of wagons from the rest of the world.
C) level of inefficiency in the domestic market caused by trade.
D) surplus in the domestic wagon market.

World Price

World Price is the international price of a good, determined by global supply and demand, affecting domestic markets.

Domestic Market

The availability and need for products and services inside the boundaries of a nation.

Surplus

A situation where the quantity of a product or resource exceeds the quantity demanded or utilized.