Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable. Price Qdd Qsd $5.00 200 400 4.00 250 350 3.00 300 300 2.00 350 250 1.00 400 200 If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will a. neither export nor import the product b. export some units of the product c. import some units of the product d. not produce the product
Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable. Price Qdd Qsd $5.00 200 400 4.00 250 350 3.00 300 300 2.00 350 250 1.00 400 200 If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will a. neither export nor import the product b. export some units of the product c. import some units of the product d. not produce the product
Chapter34: World Trade Equilibrium
Section: Chapter Questions
Problem 7E
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Question
Use the following table for Country X to answer the next question. Column 1 of the table is the world-market
| Price | Qdd | Qsd |
| $5.00 | 200 | 400 |
| 4.00 | 250 | 350 |
| 3.00 | 300 | 300 |
| 2.00 | 350 | 250 |
| 1.00 | 400 | 200 |
If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will
a. neither export nor import the product
b. export some units of the product
c. import some units of the product
d. not produce the product
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ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning