(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 shoes produced domestically at the new international price from the number of shoes consumed at this price, we will get one point on ____________ for shoes.

Question

Quizplus · Accepted Answer

A country's import demand schedule shows the quantity of a good that the country would like to import at different prices. Subtracting the number of shoes produced domestically at the new international price from the number of shoes consumed at this price gives us the quantity of shoes that must be imported. Therefore, this calculation gives us a point on the import demand schedule for shoes.

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