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Question 1
The graph below shows the supply and demand curves and the world price for bags. Graphing window shows horizontal axis: 0 to 12, vertical axis: 0 to 12. Start Graph, Color red
xy
02
13
24
35
46
57
68
79
810
911
1012
1113
1214
Start Graph, Color blue
xy
010
19
28
37
46
55
64
73
82
91
100
11-1
12-2
Start Graph, Color black
xy
05
15
25
35
45
55
65
75
85
95
105
115
125
Label "Quantity of bags" at pixel coordinates (175,0).Label "Price of bags" at pixel coordinates (0,170).Label "Demand" at (1,10-1). Label "Supply" at (1,2+1). Label "Price with free trade" at (1,5).

What is the equilibrium price if this country does not trade?

 

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Question 2

What is the equilibrium quantity if this country does not trade?

 

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Question 3

What is the world price with free trade?

 

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Question 4

What is domestic quantity demanded at the world price with free trade?

 

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Question 5

What is the amount of the domestic supply at the world price with free trade?

 

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Question 6

At this world price with free trade, this country will

 

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Question 7

What is the amount of the imports at the world price?

 

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Question 8

What is the size of the gains from trade at the world price with free trade?

 

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