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Question 1
The graph below shows the supply and demand curves and the world price for soda. 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
012
111
210
39
48
57
66
75
84
93
102
111
120
Start Graph, Color black
xy
03
13
23
33
43
53
63
73
83
93
103
113
123
Label "Quantity of soda" at pixel coordinates (175,0).Label "Price of soda" at pixel coordinates (0,170).Label "Demand" at (1,12-1). Label "Supply" at (1,2+1). Label "Price with free trade" at (1,3).

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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