Use the following to answer questions :
Figure: The Domestic Market for Rice
-(Figure: The Domestic Market for Rice) Look at the figure The Domestic Market for Rice. Assume that P_A is the autarky price and P_W is the world price. After international trade, this nation will _____ a quantity of rice equal to _____.

Question

Use the following to answer questions :
Figure: The Domestic Market for Rice

-(Figure: The Domestic Market for Rice) Look at the figure The Domestic Market for Rice. Assume that P_A is the autarky price and P_W is the world price. After international trade, this nation will _____ a quantity of rice equal to _____.

Quizplus · Accepted Answer

After international trade, the country will export rice at the world price, which is higher than the autarky price. Therefore, the country will gain advantage from exporting. The quantity of rice exported will be Q_s - Q_d, which is the difference between the quantity supplied and demanded at the world price.

Use the Following to Answer Questions