Use the following to answer question:
-(Figure: The Markets for Melons in Russia II)Use Figure: The Market for Melons in Russia II.Suppose Russia opens to trade and finds the world price to be $10.Russia will:

Question

Use the following to answer question: 
-(Figure: The Markets for Melons in Russia II)Use Figure: The Market for Melons in Russia II.Suppose Russia opens to trade and finds the world price to be $10.Russia will:

Quizplus · Accepted Answer

At a world price of $10, the domestic price in Russia is below the world price, indicating that Russia has a comparative advantage in producing melons. As a result, Russia will import melons to meet domestic demand. The quantity of imports will be the difference between domestic consumption at the world price ($20) and domestic production at the world price ($10), which is 30 units of melons (20-10=30). Therefore, A is the correct answer.

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