Use the following table:

a. Without trade, what will the price of clothing be?

b. If the world price of clothing is $6, what will happen? If it is $2?

c. Construct a table of this country’s demand for clothing imports (which is its excess demand for clothing at each price) and its supply of clothing exports (which is its excess supply of clothing at each price).

Transcribed Image Text:

Price of Clothing Domestic demand Domestic supply $8 100 900 $7 200 800 $6 300 700 $5 400 600 $4 500 500 $3 600 400 $2 700 300