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Figure: The Market for Oranges in South Africa
-(Figure: The Market for Oranges in South Africa) Look at the figure The Market for Oranges in South Africa. In autarky, the price of oranges in South Africa is P₁. When the economy is opened to trade, the price falls to P_W. South Africa will _____ oranges and the volume of trade will equal _____.

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Use the following to answer questions :
Figure: The Market for Oranges in South Africa

-(Figure: The Market for Oranges in South Africa) Look at the figure The Market for Oranges in South Africa. In autarky, the price of oranges in South Africa is P₁. When the economy is opened to trade, the price falls to P_W. South Africa will _____ oranges and the volume of trade will equal _____.

Quizplus · Accepted Answer

South Africa will import oranges because the world price (P_W) is lower than the autarky price (P₁). The volume of trade will equal C_T - Q_T, where C_T is the quantity of oranges consumed in South Africa and Q_T is the quantity of oranges produced in South Africa.

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