Figure 9-7.The figure applies to the nation of Wales and the good is cheese.
-Refer to Figure 9-7.With trade,the Welsh price of cheese and the Welsh quantity of cheese demanded are

Question

Figure 9-7.The figure applies to the nation of Wales and the good is cheese. 
-Refer to Figure 9-7.With trade,the Welsh price of cheese and the Welsh quantity of cheese demanded are

Quizplus · Accepted Answer

With trade, the Welsh price of cheese would equal the world price (PS1 = PW = $6) and the Welsh quantity of cheese demanded would equal the quantity supplied (QS1 = QD1 = 11). Therefore, the correct answer is B: P₁ and Q₁.