Price of | Baskets | Crimslic aUpply World Price Demuas i Dsmand | i T Baskets 8. Refer to the above figure. For this country, at the world price, what happens to the domestic market? (1 mark) a. The domestic quantity demanded is greater than the domestic quantity supplied. b. The domestic quantity demanded is less than the domestic quantity supplied. C. This country should import the basket. d. This country should raise the domestic price of baskets. 9. When does a country have a comparative advantage in a product? (1 mark) a. when the world price is lower than its domestic price b. when the world price is higher than its domestic price c. when a country can produce a larger quantity of the product d. when a country has better technology to produce the product 10. If a country allows trade and the domestic price of a good is higher than the world price, what will occur? (1 mark) a. The country will become an exporter of the good and trade at the domestic price. b. The country will become an importer of the good and trade at the world price. C. The country will become an exporter of the good and trade at the world price. d. The country will become an importer of the good and trade at the market equilibrium price