Question

a. The export supply curve for a particular country is the

• difference between quantity supplied and quantity demanded in the domestic market for a price below the domestic equilibrium price

• difference between quantity supplied and quantity demanded in the domestic market for a price above the domestic equilibrium price.

• sum of the quantity supplied and quantity demanded in the domestic market for a price above the domestic equilibrium price.

• sum of the quantity supplied and quantity demanded in the domestic market for a price below the domestic equilibrium price.

b. The import demand curve for a particular country is the

• difference between quantity supplied and quantity demanded in the domestic market for a price below the domestic equilibrium price.

• sum of the quantity supplied and quantity demanded in the domestic market for a price below the domestic equilibrium price.

• difference between quantity supplied and quantity demanded in the domestic market for a price above the domestic equilibrium price.

• sum of the quantity supplied and quantity demanded in the domestic market for a price above the domestic equilibrium price.

c. The equilibrium world price for a tradable good is determined by the

• intersection of the supply and demand schedules for the developed countries.

• difference between quantity supplied and quantity demanded in the domestic market for domestic equilibrium price.

• World Trade Organization.

• intersection of the world supply and demand schedules.

Answer 1

a. Option B.

• The export supply curve for a particular country is the difference between quantity supplied and quantity demanded in the domestic market for a price above the domestic equilibrium price.
• The quantity supplied and quantity demanded is usually measured in reference to foreign customers and producers.
• The export supply curve hence illustrates the difference between the quantity supplied by the foreign producers and the quantity of goods and services demanded by the foreign customers when the price is above the domestic equilibrium price.

b. Option A.

• The import demand curve for a particular country is the difference between quantity supplied and quantity demanded in the domestic market for a price below the domestic equilibrium price.
• This demand curve measure's the quantity demanded and supplied in reference to domestic producer's and customers.
• When the domestic prices are below the equilibrium price level, the import demand curve shows the difference between the quantity demanded by the domestic consumer's and quantity supplied by the domestic producer's.

c. Option D.

• The equilibrium world price for a tradable good is determined by the intersection of the world supply and demand schedules.
• When the economy's demand and supply are balanced and are not affected by any external forces, they intersect each other at a point called the equilibrium point.
• At this point, we get the equilibrium output quantity and the price for a tradable good.