Figure 9-26
The diagram below illustrates the market for baseballs in the U.S.
-Refer to figure 9-26.The figure shows that

Question

​Figure 9-26
The diagram below illustrates the market for baseballs in the U.S. 
-Refer to figure 9-26.The figure shows that

Quizplus · Accepted Answer

The figure shows that with the opening of the market to international trade, the world price of baseballs is lower than the domestic price in the U.S. (as shown by the horizontal line below the domestic price). This creates an incentive for domestic producers to export baseballs (supply more to the world market) and for domestic consumers to import baseballs (demand more from the world market). As a result, the U.S. becomes a net exporter of baseballs. The U.S. gains from trade in this case, as it can export at a higher price than the world price and import at a lower price than the domestic price.

​Figure 9-26 the Diagram Below Illustrates the Market for Baseballs in the in the U.S

Figure 9-26 the Diagram Below Illustrates the Market for Baseballs in the in the U.S