(Figure: A Country's Before and After Trade Equilibria) Suppose that the new international relative price of computers increases from the pre-trade price. If we then subtract the number of computers purchased domestically at the new international price from the number of computers produced, we will get one point on ____________ for computers.

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Quizplus · Accepted Answer

This question is referencing the concept of export supply, which is the amount of a good a country is willing and able to export at each possible price. Subtracting the number of computers purchased domestically at the new international price from the number of computers produced gives us the amount of computers available for export. Therefore, this point represents one point on the export supply schedule for computers.

(Figure: a Country's Before and After Trade Equilibria) Suppose That