Figure 9-6. The figure applies to the nation of Wales and the good is cheese.

-Refer to Figure 9-6.With trade,Wales

Name: Figure 9-6. The figure applies to the nation of Wales and the good is cheese. -Refer to Figure 9-6.With trade,Wales
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Question

Figure 9-6. The figure applies to the nation of Wales and the good is cheese.
 
-Refer to Figure 9-6.With trade,Wales

Quizplus · Accepted Answer

With trade, Wales is able to export Q₂ - Q₁ units of cheese, as their domestic price (P₁) is now lower than the world price (Pw). This creates a surplus of cheese, which can be exported to other countries.