Figure 5.3. Sweden's Apple Market
-Consider Figure 5.3.Suppose the rest of the world can supply apples to Sweden at a price of $0.60 per pound.With free trade, Sweden produces ____ pounds of apples and imports ____ pounds of apples.

Question

Figure 5.3. Sweden's Apple Market 
-Consider Figure 5.3.Suppose the rest of the world can supply apples to Sweden at a price of $0.60 per pound.With free trade, Sweden produces ____ pounds of apples and imports ____ pounds of apples.

Quizplus · Accepted Answer

With free trade, Sweden produces 6 pounds of apples and imports 16 pounds, as the rest of the world supplies apples at a lower price, leading to increased imports to meet domestic demand.