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On the following graph, use the green point (triangle symbol) to shade consumer surplus in Cambodia after China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus. Overall, (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT OR IMPORT & EXPORT) countries benefit from the fall in the world price of clothing, while (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT OR IMPORT & EXPORT) countries are harmed by the price change.

On the following graph, use the green point (triangle symbol) to shade consumer surplus in Cambodia after China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus. Overall, (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT OR IMPORT & EXPORT) countries benefit from the fall in the world price of clothing, while (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT OR IMPORT & EXPORT) countries are harmed by the price change.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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On the following graph, use the green point (triangle symbol) to shade consumer surplus in Cambodia after China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus.

 

Overall,   (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT  OR IMPORT & EXPORT) countries benefit from the fall in the world price of clothing, while (NEITHER IMPORT OR EXPORT, EXPORT, IMPORT  OR IMPORT & EXPORT)   countries are harmed by the price change.

### Market for Clothing in Cambodia This graph represents the clothing market in Cambodia, illustrating the interactions between domestic demand and supply with regards to the market price impacted by international influences. #### Axes: - **Y-Axis (Vertical):** Represents the "Price of Clothing." - **X-Axis (Horizontal):** Represents the "Quantity of Clothing." #### Lines and Curves: - **Domestic Demand (Downward Sloping Curve):** This curve shows the inverse relationship between the price and the quantity demanded by consumers in Cambodia. As prices decrease, the quantity demanded increases. - **Domestic Supply (Upward Sloping Curve):** This line indicates the direct relationship between price and the quantity supplied by domestic producers. Higher prices incentivize producers to supply more clothing. - **New World Price (Horizontal Line):** Represents the international market price of clothing. This line indicates a fixed price at which clothing can be imported or exported. #### Surplus Areas: - **Consumer Surplus (Green Triangle):** Located above the New World Price line and below the Domestic Demand curve. Consumer surplus represents the difference between what consumers are willing to pay and what they actually pay. - **Producer Surplus (Purple Triangle):** Found below the New World Price line and above the Domestic Supply curve. Producer surplus is the difference between what producers are willing to accept and the price they actually receive in the market. This graph provides a simple model to understand the economic forces at play in Cambodia's clothing market, highlighting the impact of world prices on consumer and producer benefits.
Transcribed Image Text:### Market for Clothing in Cambodia This graph represents the clothing market in Cambodia, illustrating the interactions between domestic demand and supply with regards to the market price impacted by international influences. #### Axes: - **Y-Axis (Vertical):** Represents the "Price of Clothing." - **X-Axis (Horizontal):** Represents the "Quantity of Clothing." #### Lines and Curves: - **Domestic Demand (Downward Sloping Curve):** This curve shows the inverse relationship between the price and the quantity demanded by consumers in Cambodia. As prices decrease, the quantity demanded increases. - **Domestic Supply (Upward Sloping Curve):** This line indicates the direct relationship between price and the quantity supplied by domestic producers. Higher prices incentivize producers to supply more clothing. - **New World Price (Horizontal Line):** Represents the international market price of clothing. This line indicates a fixed price at which clothing can be imported or exported. #### Surplus Areas: - **Consumer Surplus (Green Triangle):** Located above the New World Price line and below the Domestic Demand curve. Consumer surplus represents the difference between what consumers are willing to pay and what they actually pay. - **Producer Surplus (Purple Triangle):** Found below the New World Price line and above the Domestic Supply curve. Producer surplus is the difference between what producers are willing to accept and the price they actually receive in the market. This graph provides a simple model to understand the economic forces at play in Cambodia's clothing market, highlighting the impact of world prices on consumer and producer benefits.
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