When the price of rice is above its equilibrium value, a. consumers will bid the price up. b. suppliers will lowerthe price. c. suppliers will notice their inventories are shrinking. d. it will tend to stay above the equilibrium value. Moving from an autarkic situation to engagement in international trade, the price at which the two countries trade a. is higher than the world price. b. is lower than the world price. c. lies half way between the autarkic prices. d. lies somewhere between the autarkic prices. Suppose the domestic supply and demand curves for skateboards in the United States are given by the following set of equations: 08 = -60 + 3P OD = 390 2P If the United States could trade skateboards freely with the rest of the world at a price of S75, how many skateboards would be produced in the United States? a. 165 b. 240 c. 285 d. It depends on foreign demand skateboards When a country produces a product at a lower price than another country due to differences in supply conditions, we can say that that country has a. a comparative advantage b. an absolute advantage c. an economic superiority d. a technological superiority