The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone.

Quizplus · Accepted Answer

This statement is true as international trade based on comparative advantage allows countries to specialize and produce what they are best at, leading to increased efficiency and productivity. This, in turn, can result in higher world output and lower prices for consumers.

The Figure Below Shows the Demand (D) and Supply (S)