Moving from an autarkic situation to engagement in international trade, a. excess demand in the country with absolute advantage should equal excess supply in the country without absolute advantage. b. excess supply in the country with absolute advantage should exceed excess demand in the country without absolute advantage. c. excess demand in the country with absolute advantage should exceed excess supply in the country without absolute advantage. d. excess supply in the country with absolute advantage should equal excess demand in the country without absolute advantage.

Moving from an autarkic situation to engagement in international trade, a. excess demand in the country with absolute advantage should equal excess supply in the country without absolute advantage. b. excess supply in the country with absolute advantage should exceed excess demand in the country without absolute advantage. c. excess demand in the country with absolute advantage should exceed excess supply in the country without absolute advantage. d. excess supply in the country with absolute advantage should equal excess demand in the country without absolute advantage.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 2PA

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	a.	excess demand in the country with absolute advantage should equal excess supply in the country without absolute advantage.
	b.	excess supply in the country with absolute advantage should exceed excess demand in the country without absolute advantage.
	c.	excess demand in the country with absolute advantage should exceed excess supply in the country without absolute advantage.
	d.	excess supply in the country with absolute advantage should equal excess demand in the country without absolute advantage.