When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing. Suppose the following graph represents the market for clothing in Germany prior to the expansion of China's clothing industry. Germany is an(IMPORT OR EXPORT) of clothing because the world price is(ABOVE OR BELOW) the domestic equilibrium price.

When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing. Suppose the following graph represents the market for clothing in Germany prior to the expansion of China's clothing industry. Germany is an(IMPORT OR EXPORT) of clothing because the world price is(ABOVE OR BELOW) the domestic equilibrium price.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section3.7: A Market Supply And Demand Analysis

Problem 1YTE

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