Figure 9-1
The figure illustrates the market for wool in New Zealand.
-Refer to Figure 9-1.From the figure it is apparent that

Question

Figure 9-1
The figure illustrates the market for wool in New Zealand. 
-Refer to Figure 9-1.From the figure it is apparent that

Quizplus · Accepted Answer

The figure shows that at the world price of wool, New Zealand is able to produce and sell a quantity of wool that is greater than the quantity demanded domestically. This implies that New Zealand has a comparative advantage in producing wool and can produce it at a lower opportunity cost compared to the rest of the world. Thus, New Zealand can benefit from trade by exporting wool and importing goods it cannot produce efficiently.

Figure 9-1 The Figure Illustrates the Market for Wool in New Zealand