I. Price ($) 45 42 II. 39 36 33 30 27 24 21 18 15 12 The graph above demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were to go from autarky to free trade, which of the following statements is true? 1 2 3 4 5 6 7 8 9 10 Total surplus will increase by $35,000. Domestic consumers will purchase 9,000 units. III. The country will export 7,000 units. O II and III only OI only S World Price O III only O I, II, and III Quantity (in thousands)

I. Price ($) 45 42 II. 39 36 33 30 27 24 21 18 15 12 The graph above demonstrates the domestic demand and supply for a good, as well as the world price for that good. If this economy were to go from autarky to free trade, which of the following statements is true? 1 2 3 4 5 6 7 8 9 10 Total surplus will increase by $35,000. Domestic consumers will purchase 9,000 units. III. The country will export 7,000 units. O II and III only OI only S World Price O III only O I, II, and III Quantity (in thousands)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 3QR

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