Figure: A Country's Before and After Trade Equilibria (Figure: A Country's Before and After Trade Equilibria) At
What point will this nation be in a notrade equilibrium?

Question

Figure: A Country's Before and After Trade Equilibria  (Figure: A Country's Before and After Trade Equilibria) At
What point will this nation be in a no­trade equilibrium?

Quizplus · Accepted Answer

At point B, the domestic price is equal to the world price, indicating that there is no incentive to trade. Therefore, this nation will be in a no-trade equilibrium at point B.

Figure: a Country's Before and After Trade Equilibria (Figure