-The above figure shows the U.S.market for flip-flops.With no international trade,the price in the United States for flip-flops is ________.With international trade,the price in the United States for flip-flops is ________.

Question

Quizplus · Accepted Answer

Without international trade, the domestic price is determined by the intersection of domestic supply and demand, which is typically higher than the world price. With international trade, the domestic price aligns with the world price, which is usually lower due to increased supply from imports. Thus, the price decreases from $14 to $12 with trade.

-The Above Figure Shows the U