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-(Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa.In autarky,the price of oranges in South Africa is P₁.When the economy is opened to trade,the price falls to P_W.South Africa will _____ oranges,and the volume of trade will equal _____.

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-(Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa.In autarky,the price of oranges in South Africa is P₁.When the economy is opened to trade,the price falls to P_W.South Africa will _____ oranges,and the volume of trade will equal _____.

Quizplus · Accepted Answer

When the economy opens to trade and the price falls, it indicates that the world price is lower than the domestic price in autarky, leading to imports. The volume of trade is the difference between the quantity demanded at the world price and the quantity supplied domestically at that price.

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