Figure: A Country's Before and After Trade Equilibria (Figure: A Country's Before and After Trade Equilibria)
Suppose that the new international relative price of
Computers increases from the pretrade price.If we then
Subtract the number of shoes produced domestically at the
New international price from the number of shoes consumed
At this price, we will get one point on ____________ for
Shoes.

Question

Figure: A Country's Before and After Trade Equilibria  (Figure: A Country's Before and After Trade Equilibria)
Suppose that the new international relative price of
Computers increases from the pretrade price.If we then
Subtract the number of shoes produced domestically at the
New international price from the number of shoes consumed
At this price, we will get one point on ____________ for
Shoes.

Quizplus · Accepted Answer

The question is asking for the import demand schedule for shoes, which shows the quantity of shoes that a country would demand at different prices after trade. Option A is the only choice that describes the import demand schedule. Option B describes the export supply schedule, which shows the quantity of shoes that a country would export at different prices after trade. Option C describes the production possibilities frontier, which shows the combinations of shoes and computers that a country can produce with its given resources and technology. Option D describes the indifference curve, which represents the different combinations of shoes and computers that yield the same level of satisfaction for a consumer.

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