-The above figure shows the Australian market for replacement mobile phone batteries. When there is no international trade, the equilibrium price is ________ per battery and when there is international trade the equilibrium price is ________ per battery.

Question

Quizplus · Accepted Answer

Without international trade, the equilibrium price is determined by the intersection of the domestic supply and demand, which is $14. With international trade, the price is determined by the world market, which is $10.

-The Above Figure Shows the Australian Market for Replacement Mobile