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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
04
15
26
37
48
59
610
711
812
913
1014
1115
1216
Start Graph, Color blue
xy
012
111
210
39
48
57
66
75
84
93
102
111
120
Start Graph, Color black
xy
010
110
210
310
410
510
610
710
810
910
1010
1110
1210
Label "Quantity of bags" at pixel coordinates (175,0).Label "Price of bags" at pixel coordinates (0,170).Label "Demand" at (1,12-1). Label "Supply" at (1,4+1). Label "Price with free trade" at (1,10).

What is equilibrium price if this country does not trade?

 

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Question 2

What is 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 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 exports at the world price with free trade?

 

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Question 8

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

 

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