The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports.

Quizplus · Accepted Answer

If the world price is above the domestic "no-trade" equilibrium price, the domestic market would experience a surplus rather than a shortage, as domestic producers would be able to sell their goods at a higher price on the world market, leading to increased domestic production and potential exports, not imports.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity