The following data is for the hypothetical nations of Alpha and Beta.Q s is domestic quantity supplied and Q d is domestic quantity demanded.

-Refer to the above data.At a world price of $2:

Question

The following data is for the hypothetical nations of Alpha and Beta.Q s is domestic quantity supplied and Q d is domestic quantity demanded.
 
-Refer to the above data.At a world price of $2:

Quizplus · Accepted Answer

At a world price of $2, the domestic price in both Alpha and Beta is above the world price, indicating that they have a comparative advantage in producing steel. Alpha's domestic quantity demanded is 80, while their domestic quantity supplied is only 60, indicating that they want to import the difference of 20 units at the world price. On the other hand, Beta's domestic quantity supplied is 80 while their domestic quantity demanded is only 60, indicating that they have a surplus of 20 units and want to export them at the world price. Therefore, Alpha will want to import 20 units of steel.

The Following Data Is for the Hypothetical Nations of Alpha