Figure 9-26
The diagram below illustrates the market for baseballs in the U.S.
-Refer to Figure 9-26. The figure shows that

Question

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S. 
-Refer to Figure 9-26. The figure shows that

Quizplus · Accepted Answer

The graph shows that the supply and demand curves intersect at a price of $3 and a quantity of 3 million baseballs. This indicates that the U.S. has a comparative advantage in the production of baseballs, as they are able to produce them at a relatively lower opportunity cost compared to other countries. Opening up the market to international trade would likely result in an increase in demand for U.S. baseballs, leading to an increase in production and potential export opportunities. There is no indication from the graph that there would be a surplus or shortage of baseballs if the market opened up to international trade, and the graph does not provide information on absolute advantage.

​Figure 9-26 the Diagram Below Illustrates the Market for Baseballs in the in the U.S

Figure 9-26 the Diagram Below Illustrates the Market for Baseballs in the in the U.S