The figure to the right shows a country in pretrade equilibrium at point X, where the relative price per ton of coal is 1.2 tons of sugar (blue line). Once trade commences, suppose the world relative price of coal ends up at 2.2 tons of sugar (red line) and, as a result, this country chooses to export 2 tons of coal. Using the point drawing tool, show this country's post-trade consumption point. Carefully follow the instructions above and only draw the required object. Compared to its pretrade consumption choice, this country is now consuming A. less coal and more sugar. OB. less sugar and more coal. OC. more of both goods. OD. less of both goods. 10- 9- 8-47.8 7 6- 5- 3- 2- Sugar: Qs and Ds 1- 3.4 13 X Y 9 Coal: Qc & Dc 10

The figure to the right shows a country in pretrade equilibrium at point X, where the relative price per ton of coal is 1.2 tons of sugar (blue line). Once trade commences, suppose the world relative price of coal ends up at 2.2 tons of sugar (red line) and, as a result, this country chooses to export 2 tons of coal. Using the point drawing tool, show this country's post-trade consumption point. Carefully follow the instructions above and only draw the required object. Compared to its pretrade consumption choice, this country is now consuming A. less coal and more sugar. OB. less sugar and more coal. OC. more of both goods. OD. less of both goods. 10- 9- 8-47.8 7 6- 5- 3- 2- Sugar: Qs and Ds 1- 3.4 13 X Y 9 Coal: Qc & Dc 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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