PriceDomestic SupplyWorld Price75Domestic Demand456Quantity1. If this country decides to trade with other countries, will they export or importgoods? Export ✰2. If this country decides to trade with other countries, calculate the gains from trade.3. If this country decides to trade with other countries, how much will they export orimport?4. Calculate the producer surplus for this country if they decide to trade.5. What is the autarky price? 5>?

4. Producer surplus = 0.5 *(price received - autarky price) * quantity traded=…

Answered: Price Domestic Supply World Price 7 5…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 6PA

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