The diagram below shows supply and demand curves for the same good in two countries, A and B. Based on the prices and areas labeled there, Country B P Country A P P3 d P a P D D O The autarky price in...


The diagram below shows supply and demand curves for the same good in two countries, A and B.<br>Based on the prices and areas labeled there,<br>Country B<br>P<br>Country A<br>P<br>P3<br>d<br>P<br>a<br>P<br>D<br>D<br>O The autarky price in Country A is P2.<br>O Country B has a comparative advantage in this good.<br>Moving from autarky to free trade makes suppliers in Country A worse off by the amount a+b.<br>O Moving from autarky to free trade makes demanders in Country B better off by the amount c+d.<br>

Extracted text: The diagram below shows supply and demand curves for the same good in two countries, A and B. Based on the prices and areas labeled there, Country B P Country A P P3 d P a P D D O The autarky price in Country A is P2. O Country B has a comparative advantage in this good. Moving from autarky to free trade makes suppliers in Country A worse off by the amount a+b. O Moving from autarky to free trade makes demanders in Country B better off by the amount c+d.

Jun 09, 2022
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