Figure shows that a nation will export goods that have a lower relative price domestically than they do in international markets (in this case, good Y ). What factors determine such a nation's ''comparative advantage''? 11eb5bc8_eb8b_64eb_bcf8_ab55d9a6afe4_SM2615_00 U.S. farm subsidies reduce the world price of this crop from P* to P**. Exports rom this African country fall fromQS _QD to Q'S _ Q'D.

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Edition 12ISBN: 978-1133189022

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Edition 12ISBN: 978-1133189022

Exercise 16

Figure shows that a nation will export goods that have a lower relative price domestically than they do in international markets (in this case, good Y ). What factors determine such a nation's ''comparative advantage''?

U.S. farm subsidies reduce the world price of this crop from P* to P**. Exports rom this African country fall fromQS _QD to Q'S _ Q'D.

Explanation

Verified

Comparative advantage
A nation will exp...