I am only given a demand curve and an "external price" for the good, but I can find no definition of external price in any book. I am supposed to find the price and quantity of equilibrium.

  • 2
    $\begingroup$ "External price" could just mean an exogenously fixed price. But then it's not an equilibrium, so the question sounds odd. Do you have the exact wording? $\endgroup$
    – VARulle
    Commented Sep 15, 2022 at 6:48
  • $\begingroup$ just a guess: may as well be the price in the "external" (foreign) market. This would be an equilibrium but simply neither the consumer nor the firm in perfect competition can change it. $\endgroup$ Commented Sep 15, 2022 at 14:02


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