Wholesalers buy and sell roses in containers that hold 120 stems. The table provides

information about the wholesale market for roses in the UAE. The demand schedule is the

wholesalers' demand and the supply schedule is the UAE rose growers' supply. Wholesalers

can buy roses at auction in Aalsmeer, Holland, for US $125 per container.

Required:

a. Without international trade, what would the price of a container of roses be and

how many containers of roses a year would be bought and sold in the UAE?

b. At the price in your answer to part (a), does the UAE or the rest of the world have a

comparative advantage in producing roses? Explain.

c. If UAE wholesalers buy roses at the lowest possible price, how many do they buy

from UAE growers and how many do they import?