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''? 11eb6a9c_852d_1a87_bd9a_8fff808e26de_SM2616_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 11th Edition by Walter Nicholson,Christopher Snyder

Edition 11ISBN: 978-0324599107

Intermediate Microeconomics and Its Application 11th Edition by Walter Nicholson,Christopher Snyder

Edition 11ISBN: 978-0324599107

Exercise 2

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...