The diagram below shows a situation where the country would export the good. Price of Pencil Sharpeners $24 Domestic Supply World Price 16 12 Domestic Demand Quantity of Pencil Sharpeners 200 300 450 a.) How much will it export if free trade is allowed? b.) If the country goes from autarky to free trade the producer surplus will increase by $. pencil sharpeners

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
Section: Chapter Questions
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The diagram below shows a situation where the country would export the good.
Price of
Pencil
Sharpeners
$24
Domestic
Supply
World
Price
16
12
Domestic
Demand
4
Quantity of
Pencil
Sharpeners
200
300
450
a.) How much will it export if free trade is allowed?
pencil sharpeners
b.) If the country goes from autarky to free trade the producer surplus will increase by $
Transcribed Image Text:The diagram below shows a situation where the country would export the good. Price of Pencil Sharpeners $24 Domestic Supply World Price 16 12 Domestic Demand 4 Quantity of Pencil Sharpeners 200 300 450 a.) How much will it export if free trade is allowed? pencil sharpeners b.) If the country goes from autarky to free trade the producer surplus will increase by $
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