If international trade is possible, what will happen to the surplus of contact lenses?PS- the graph shown is for contact lenses. Idk how to go about this problem? McGrawHillMacro- International TradeEconomicsMentorDomestic Market: No TradeIf the world price is greater than $120, does this create ashortage or surplus of contact lenses in the domesticmarket?No International TradeJulio240200 -It creates a surplus - the domestic quantity suppliedwill be greater than the domestic quantity demanded.160 -120 -80-40Vivan40120160200240That is correct!o Quantity Supplied - Quantity DemandedDomestic MarketPriceQuantity SuppliedQuantity DemandedНаpрy240EconomicsMentor20202204040200If international trade is possible, what will happen to thesurplus of contact lenses?60601808080160Julio10010014012012012014014010016016080The domestic surplus will be exported and sold in the international market.18018060The surplus will require that our domestic market import contact lenses from the20020040international market.22022020240240

When there is no trade taking place in the economy, the quantity supplied is equal to the quantity…

Mc Graw Hill Macro- International Trade EcoTomIcs Mentor Domestic Market: No Trade If the world price is greater than $120, does this create a shortage or surplus of contact lenses market? the domestic No International Trade Julio 240 200 It creates a surplus - the domestic quantity supplied will be greater than the domestic quantity demanded. 160 80 40- Vivan 120 160 200 That is correct! -Quantity Supplied - Quantity Demanded Domestic Market Price Quantity Supplied Quantity Demanded Наpрy 240 Economics Mentor 20 20 220 40 40 200 If international trade is possible, what will happen to the surplus of contact lenses? 60 60 180 80 80 160 Julio 100 100 140 120 120 120 140 140 100 160 160 80 The domestic surplus will be exported and sold in the international market. 180 180 60 The surplus will require that our domestic market import contact lenses from the international market. 200 200 40 220 220 20 240 240

Mc Graw Hill Macro- International Trade EcoTomIcs Mentor Domestic Market: No Trade If the world price is greater than $120, does this create a shortage or surplus of contact lenses market? the domestic No International Trade Julio 240 200 It creates a surplus - the domestic quantity supplied will be greater than the domestic quantity demanded. 160 80 40- Vivan 120 160 200 That is correct! -Quantity Supplied - Quantity Demanded Domestic Market Price Quantity Supplied Quantity Demanded Наpрy 240 Economics Mentor 20 20 220 40 40 200 If international trade is possible, what will happen to the surplus of contact lenses? 60 60 180 80 80 160 Julio 100 100 140 120 120 120 140 140 100 160 160 80 The domestic surplus will be exported and sold in the international market. 180 180 60 The surplus will require that our domestic market import contact lenses from the international market. 200 200 40 220 220 20 240 240

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 9P

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