Figure 9.1 looks at a case where the world price is below the domestic no-trade price. Lets
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Figure 9.1 looks at a case where the world price is below the domestic no-trade price. Let’s look at the case where the world price is above the domestic no-trade price. We’ll work with the market for airplanes shown in the figure below. pg69
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Price per plane (in millions of dollars) World price $200 $150 Domestic supply of planes World supply Domestic demand for planes Quantity of airplanes
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