1. Refer to Figure 9-2. If China were to abandon a no-trade policy in favor of a free-trade policy,

Price of Pencil Sharpeners $24 Domestic Supply 16 World Price 12 Domestic Demand 200 300 450 Quantity of Pencil SharpenersPrice of Pencil Sharpeners $24 Domestic Supply 16 World Price 12 Domestic Demand 200 300 450 Quantity of Pencil SharpenersPrice of Baskets $14 Domestic supply 10 World Price Domestic Demand 40 70 105 Quantity of BasketsPrice of Calculators $27 Domestic Supply 12- World Price 2 Domestic Demand 0 150 300 400 Quantity of Calculators