The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields high-quality cashmere. Capralia's authorities are still debating whether to open their economy to international trade. The international price of cashmere is $70,000 per metric ton, and the Capralian cashmere sells for $50,000 per metric ton. Place the consumer surplus triangle (CS) and the producer surplus triangle (PS) to correctly depict consumer and producer surplus if Capralia chooses to open its borders to the international cashmere trade. 100 Price (metric ton) 90 80 70 80 50 40 30 20 10 10 0 Capralia's Domestic Cashmere Market 6 domestic supply domestic equilibrium 12 18 24 30 36 42 Quantity (thousands of metric tons) 48 54 60 CS Capralia will import 36,000 metric tons of cashmere. Capralia will export 24.000 metric tons of cashmere. Capralia will not engage in international trade. Capralia will export 12,000 metric tons of cashmere. Capralia will import 24,000 metric tons of cashmere. PS Predict what Capralia will do based on the information given in the graph.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields high-quality cashmere. Capralia's
authorities are still debating whether to open their economy to international trade. The international price of cashmere is $70,000
per metric ton, and the Capralian cashmere sells for $50,000 per metric ton.
Place the consumer surplus triangle (CS) and the producer surplus triangle (PS) to correctly depict consumer and producer
surplus if Capralia chooses to open its borders to the international cashmere trade.
100
Price (metric ton)
90
80
70
80
50
40
30
20
10
10
0
Capralia's Domestic Cashmere Market
6
domestic supply
domestic equilibrium
12 18 24 30 36 42
Quantity (thousands of metric tons)
48
54 60
CS
Capralia will import 36,000 metric tons of cashmere.
Capralia will export 24.000 metric tons of cashmere.
Capralia will not engage in international trade.
Capralia will export 12,000 metric tons of cashmere.
Capralia will import 24,000 metric tons of cashmere.
PS
Predict what Capralia will do based on the information given in the graph.
Transcribed Image Text:The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields high-quality cashmere. Capralia's authorities are still debating whether to open their economy to international trade. The international price of cashmere is $70,000 per metric ton, and the Capralian cashmere sells for $50,000 per metric ton. Place the consumer surplus triangle (CS) and the producer surplus triangle (PS) to correctly depict consumer and producer surplus if Capralia chooses to open its borders to the international cashmere trade. 100 Price (metric ton) 90 80 70 80 50 40 30 20 10 10 0 Capralia's Domestic Cashmere Market 6 domestic supply domestic equilibrium 12 18 24 30 36 42 Quantity (thousands of metric tons) 48 54 60 CS Capralia will import 36,000 metric tons of cashmere. Capralia will export 24.000 metric tons of cashmere. Capralia will not engage in international trade. Capralia will export 12,000 metric tons of cashmere. Capralia will import 24,000 metric tons of cashmere. PS Predict what Capralia will do based on the information given in the graph.
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