Figure 9-18

question 211

Multiple Choice

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.If Isoland allows international trade and if the world price of peaches is $5,then

• A)Isoland has a comparative advantage,relative to other countries,in producing peaches.
• B)Isoland will import peaches.
• C)consumer surplus with trade exceeds consumer surplus without trade.
• D)All of the above are correct.

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Definitions:

Specified Prices

Prices that are explicitly set out, defined, or agreed upon in a contract or agreement.

Contractual Liability

The liability that individuals or entities have to one another as a result of entering into an agreement.

Common Law

A system of law based on precedent and customs rather than statutory laws.

Gap-Filling Rules

Provisions in law that allow courts or parties to fill in missing terms in a contract.