With trade, Guatemala will a) export 22 units of coffee.b) export 10 units of coffee.c) import 30 units of coffee.d) import 12 units of coffee. Price150 +140130Domestic supply120110Worldprice10090н8070Domestic demand6050403020102 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 Quantity

Answered: Image /qna-images/answer/24ea39f5-b07d-4d48-8354-d20afa8f36e1.jpg

Answered: Price 150 + 140 130 Domestic supply 120…

Price 150 + 140 130 Domestic supply 120 110 World price 100 90 н 80 70 Domestic demand 60 50 40 30 20 10 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

With trade, Guatemala will

a) export 22 units of coffee.

b) export 10 units of coffee.

c) import 30 units of coffee.

d) import 12 units of coffee.

Price
150 +
140
130
Domestic supply
120
110
World
price
100
90
н
80
70
Domestic demand
60
50
40
30
20
10
2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 Quantity

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