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1. International Trade The following figure shows the demand curve, D, and the supply curve, S, for soap in Barylia. Price ($) 31 N 0

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1. International Trade The following figure shows the demand curve, D, and the supply curve, S, for soap in Barylia. Price ($) 31 N 0 5 10 15 20 25 30 35 45 Quantity (Units) A. If Barylia does not import or export soap, the equilibrium price will be $3 And the equilibrium quantity will be _20_. (2 points) B. In the graph above, shade in and label the Consumer Surplus and the Producer Surplus in the scenario that you described in part A. (2 points) C. If the world price for soap is $2, how would international trade change the situation in Barylia? Would Barylia import or export soap? How much? (2 points) D. In the graph below, shade in a label the Consumer Surplus and the Producer Surplus in the scenario that you described in part C. (2 points) Price ($) 51 D 4 2 0 5 10 15 20 25 30 35 40 45 Quantity (Units)

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